Hayat & Co. are able to deal with the entire lease extension process from start to finish for both leaseholders and freeholders, including arranging the valuation, serving notices, negotiating the lowest possible premium, drafting the paperwork and application to the Land Registry post-completion.
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I am a leaseholder
I am a landlord / freeholder
Lease Extension Solicitors for Leaseholders
Specialists with most local authorities: Islington, Tower Hamlets, Barnet, Bromley, Crawley, Ealing, Hackney, Harrow, Lambeth, Kensington & Chelsea, Lewsham, Waltham Forest, Southwark, Sutton, Luton, Bath etc.
Legal fees – If the premium has been agreed
Fixed total fees of £750 and disbursements of £55 (including Land Registry fees to register the lease extension, Office Copies, ID check and bank transfer fees approx £75).
These fees are quoted provided that you have come to an agreement with your Landlord to extend the lease. If more than one Tenant instructs us simultaneously (under the same freehold title) there is scope for a reduction in our fees, see below (block lease extensions).
Block lease extensions
Multiple leaseholders who all wish to extend their leases simultaneously within the same freehold title have scope for reduction in legal fees. A minimum of four leaseholders must extend simultaneously to quality. In such cases our fees are:
4 – 5 leaseholders: £595 (+ Land Registry disbursements of £49)
6 – 9 leaseholders: £495 (+ Land Registry disbursements of £49)
10-20 leaseholders: £45 + Land Registry disbursements of £49)
20+ leaseholders: £395 (+ Land Registry disbursements of £49)
For any leaseholders who have a mortgage, there is an additional fee of £50 as we need to obtain signed documentation from any lender.
Legal fees – If the premium has been not been agreed
Fees for preparing and serving a Section 42 Notice
£150 and disbursements of £9.
This includes dealing with receipt of the counter notice from the freeholder.
A Section 42 notice is a formal notice that a tenant issues on a landlord to initiate the formal statutory route. It may be in the case of being unable to agree the premium informally, or if the landlord demands the notice is served.
Valuation of the lease extension price
The premium that you should expect to pay is based upon a complex algorithm in accordance with statute law. The algorithm is constantly changing due to modifications set out in recent cases at the Court of Appeal. We can arrange a professional valuation providing a comprehensive breakdown of the estimated calculated premium at a fee of £150. The valuation is carried out remotely; access is not required as the calculation involves variables contained within your lease as well as comparable market evidence in your local area.
Negotiation of the premium
We can help negotiate a lower premium based upon your valuation. Fees depend on the extent of the negotiations, but usually range between £100. On almost every occasion we are able to achieve a significant reduction on the landlord’s first counter-offer.
Do I have a right to extend my lease?
Unless you agree informally, it is essential that you have owned the leasehold for a period of at least 2 years to qualify.
How much will it cost to extend my lease?
The answer to this question depends mainly on the length of term the lease has left. The key point to consider here is the effect of having less than 80 years left to run on the lease. Contact us to arrange a professional desktop valuation to work out an accurate cost. A comprehensive report can be arranged at a cost of £150 and will be used to assist with negotiating a lower premium with the landlord.
I have 80 or more years left to run on my lease – In this case you will only have to pay the Landlords premium (including his/her reasonable legal fees). This can either be agreed by both the Landlord and the Tenant coming to an agreement or otherwise through the Leasehold Valuation Tribunal (LVT). The LVT will take into account many factors into consideration when determining the ‘price’ which are outlined in further detail down this page.
I have less than 80 years left to run on my lease – In this case the cost of extending your lease will be significantly more than if you have 80 or more years to run. In determining the cost for the lease extension, ‘marriage value’ now becomes an additional factor; an expensive one at that.
‘Marriage value’ is explained in more detail in the next section below.
If you currently hold the leasehold interest in a residential property, it is important to understand the implications of your ever decreasing term length resulting in it becoming a ‘wasted asset’. As the number of years left on a lease decreases, so does it’s value, however getting a lease extension may not have to be expensive if you act early and instruct specialist lease extension solicitors. There are two primary factors to consider in regards to residential lease extensions where are addressed below.
If the ‘price’ of extending the lease cannot be agreed
If, after serving a notice on the freeholder, both the Landlord and Tenant cannot agree on the price of the lease extension then the Leasehold Valuation Tribunal will determine it in accordance with the rules set out in statute and recent case law. The aim is to compensate the freeholder for the loss of interest in the property. The tribunal will attempt to put a figure on the following:
The value of the freeholders interest, including payment of lost ground rent.
The marriage value.
The proportional split between the freeholder and any intermediate landlords costs.
The amount of any compensation.
A good estimate of the costs can be found using this lease extension calculator, but keep in mind that a professional determination should be prepared in a full report to assist with negotiations. Contact us should you require this.
For how long can I extend my lease?
A period of 90 years is available as per the Leasehold Reform Housing and Urban Development Act, 1993. This is additional to the existing years currently existing on the lease. For this term, no ground rent will be payable.
How can I extend my lease?
Whether you are a freeholder or leaseholder it is strongly advised that you consult a solicitor to deal with lease extensions. The process can vary depending on whether the tenant and landlord can agree on a premium. Also if there are less than 80 years to run on the lease the process can become very complex and it is important that you are able to get the ‘right’ price for the extension.
Lease Extension Solicitors for Landlords / Freeholders
You will not pay any fees if you are a freeholder. The leaseholder will be responsible for meeting our fees of £850. If we are instructed to deal with multiple lease extensions simultaneously our fees can be reduced.
Hayat & Co. can deal with all matters on your behalf, including arranging a valuation for the premium payable be the leaseholder, as well as negotiating to achieve the best possible premium.
