Lease extension & enfranchisement

We have a team of lawyers who have extensive experience dealing with leasehold enfranchisement matters.  We advise landlords and leaseholders as well as developers on this complex area of law and we work closely with other professionals including valuers and surveyors.

Our specialist team can offer advice and guidance on the following issues:

• The freehold purchase of a house
• Extending the lease of a house
• The freehold purchase of a building containing flats
• Extending the lease of an individual flat
• Right of first refusal
• Right to manage
• Applications to the Tribunal and to the Court
• Advice on strategy for protecting and enhancing the value of your investment.

We provide a comprehensive service including clear and concise advice and information on costs.

How can I extend my lease?

As a general rule there are two options for extending a lease of a flat or a lease of a house. The first option is for a tenant to approach their landlord to ask whether the landlord is willing to grant a new lease without the tenant having to follow one of the statutory procedures for claiming a new lease. Some landlords will agree to extend the lease outside of the statutory process on terms that are acceptable to the tenant and any lender who might have a charge over the property. Provided the relevant statutory conditions for extending a lease are fulfilled by the tenant the second option is for the tenant to serve a formal notice of claim for a new lease on the landlord. In the case of a flat the notice of claim will be served under the Leasehold Reform, Housing & Urban Development Act 1993 and where the leasehold property is a house the notice of claim will be served under the Leasehold Reform Act 1967.

How much does it cost to extend a lease?

Before making a claim for a new lease it is advisable to obtain advice from a valuer in connection with the premium the tenant can expect to pay to the landlord for the new lease. If the tenant follows the statutory route for claiming a lease extension, the 1993 Act and the 1967 Act both set out a formula for calculating the premium the tenant must to the landlord in return for the new lease. In addition the tenant will incur legal costs with their own solicitor, Land Registry fees and any fees their lender might charge for giving their consent to the new lease. Under both the 1993 Act and the 1967 Act the tenant is obliged to pay the landlord’s reasonable costs in connection with certain aspects of the lease extension process. If the terms on which the new lease is to be granted cannot be agreed with the landlord, the tenant may also incur the cost of an application to the First-Tier Tribunal (Property Chamber) to ask the Tribunal to determine the issues that are in dispute.

Can a leaseholder buy the freehold of a property?

Provided the qualifying conditions set out in the 1967 Act are fulfilled, a tenant may be entitled to buy the freehold of a leasehold house from the landlord. In relation to the freehold of a building containing flats, the tenant acting together with other flat owners in the building may be able to jointly acquire the landlord’s freehold interest under the 1993 Act, again provided the qualifying conditions can be met. The process under the 1993 Act is known as “collective enfranchisement”. There may be other circumstances in which a tenant may buy the freehold of a property. For example in the case of a building containing flats the flat owners may be entitled to acquire the freehold under the right of first refusal process set out in the Landlord and Tenant Act 1987.