Lease extension solicitors

What is a lease extension?

First, what is a leasehold property? This is when you have the right to live in the property for a set number of years, but you don’t own the land. This means that after your lease period runs out, the property and the land go back to the freeholder, who is effectively the landlord.

Selling a leasehold property

You may be wondering how you sell a leasehold property if you don’t own the land. It’s straightforward, in that if you want to move away and sell the property, you are simply selling the years of the lease over to the new buyer. Once the new owner has moved in, they will have the same rights you once had, meaning they’ll live in the property but don’t own the land.

However, there are important steps to take before selling your leasehold property, and you may need to extend your lease before you can sell, due to mortgage lenders having certain requirements on minimum lease lengths. You’ll also benefit from a conveyancer who can handle the legal documents and processes.

When does my lease need to be renewed?

Generally, it’s recommended that you extend your lease before it drops below the 80-year mark. Once it goes below this, it can become more expensive to extend the lease. Therefore, the shorter your lease is, the more expensive it can become.

This is due to a calculation named ‘marriage value’. Once your lease dips below 80 years, your freeholder is entitled to a share of the increased value that’s created from the extension.

What types of extensions can I use?

When looking to extend your lease, you have two options: the statutory route and the informal route; which one you use will depend on your case. Your solicitor will be able to advise on which is suitable for you.

• The statutory route: as long as the leaseholder has owned the property for at least two years, they have a right to extend the lease. A solicitor will give the freeholder a formal notice, detailing the terms, and then the freeholder will have two months to respond to this notice. It’s important to remember that once the notice has been served, the leaseholder’s right to an extension is protected no matter what. If there’s a dispute over the terms, the case can be taken to a tribunal, however most cases are settled without needing to go to Court.
• The informal route: essentially, if the leaseholder has owned the property for less than two years, or they’d like to speak to the freeholder directly, an informal extension could be the right option. Terms are agreed between leaseholder and freeholder, with no real process in place. This is a good option for some as it can be quicker and more flexible but doesn’t guarantee as much protection.

Another important option that some may want to consider is a collective enfranchisement. This is when you share a building, such as an apartment block, with other leaseholders, but you decide to buy the freehold together. One of our experienced solicitors can advise on which route is the right one for you, or if collective enfranchisement is a viable option.

How can Fisher Jones Greenwood help with your lease extension?

Our solicitors are experienced in handling lease extension cases, and we understand that the process can feel overwhelming at times. We want to make sure you feel confident that your property case is being taken care of correctly, which is why we offer a range of services:

• Reviewing documents, such as existing leases, and advising on terms and conditions.
• Directing you to the best route for your unique situation.
• Liaising with relevant specialists, like surveyors, if valuations and checks are needed.
• Advising you if you’re a freeholder and have received an extension notice.
• Taking care of registrations with Land Registry once your lease extension has been finalised.

We’ll handle the legalities so you don’t have to, and we’ll always be there to support you from start to finish.

Why choose Fisher Jones Greenwood

When it comes to protecting your property, you’ll want expertise and transparency.

We’ve got a breadth of local expertise built up over decades, trusted by clients across Essex, Suffolk and London and beyond. We’ll always make sure you’re kept up to date throughout your process with plain-speaking language – no legal jargon that might confuse you.

We’re ranked in the Legal 500 as well as Chambers and Partners, and our recognition reflects the hard work we put into each case. No matter your situation, we’ll handle it with the care it deserves.