Extend Your Lease

Start Lease Extensions work closely with two of the leading companies involved in providing lease extensions in the South East area – MAP Chartered Surveyors and Judge & Priestley LLP solicitors. Start Lease Extensions has been created to offer a simple fixed fee all–inclusive package that will cover all of your legal and surveying work and costs necessary to deliver your lease extension.

• A simple fixed all-inclusive price to cover all of your legal and surveying costs £2,500 +VAT  

• Work carried out by leading professionals, all specialists in their field, regulated by the Solicitors Regulatory Authority and members of the Royal Institute of Chartered Surveyors (RICS).

• Discounted fees if you get together with fellow leaseholders in your block to make a multiple application.

• Start Lease Extensions expert team available to answer your queries and guide you through the extension process.

 

How to extend your lease

Why extend your lease?
The Process

Put simply, as a lease becomes shorter, it loses value and the property can become more difficult to sell. There are two notable trigger points that exacerbate these issues. When the remaining term of the lease falls below 80 years the cost of a lease extension starts to rise significantly. This is because an additional calculation factor known as “marriage value” will be added to the cost of any extension once this point is reached. A lease with less than 80 years to run will often be referred to as a “short” lease as a result and this additional cost will continue to rise rapidly the shorter the lease becomes.

The impact on the saleability of your property, however, becomes even more acute if the outstanding lease falls below 70 years. The issue here is that most high street mortgage lenders will refuse to lend against a property which has less than 70 years remaining on the lease, severely restricting the number of potential purchasers of the property.

It is therefore definitely in your financial interest to consider extending your lease no matter what the outstanding term but especially if it is getting near to the 80 year threshold.

​To extend your lease, you must agree and pay a reasonable “premium” to the Landlord who owns the freehold of the building. There is statutory guidance on how this premium should be calculated and it is possible for you to negotiate the premium and terms of a lease extension directly with your Landlord (a non-statutory lease extension), but there is no obligation on their part to agree the premium and no option to compel them to grant an extension. The most reliable route is therefore to seek a statutory lease extension.

If you extend your lease for 90 years via the statutory process, you stop becoming liable to pay ground rent. This can help to offset the costs you incur in extending the lease and is a further benefit that is guaranteed by using the statutory route. The flowchart below outlines the process of the statutory process. As you will see the statutory process also has certain key fixed time limits which ensure the process cannot be blocked indefinitely.