Lease Extensions - Merton
If you own a flat or maisonette in this area of London, you may require a lease extension for your property, regardless of whether your freeholder is a private company or a local authority.
Exceptional Quality – 195 Lease extensions since 2016
Our team has extensive experience of providing lease extension services within Merton areas such as Bushey Mead, Colliers Wood, Copse Hill, Cottenham Park, Lower Morden, Merton Park, Mitcham, Morden, Morden Park, Motspur Park, Pollards Hill, Raynes Park, St. Helier, South Wimbledon, Summerstown, West Barnes, Wimbledon, Wimbledon Park.
Leasehold Reform Housing and Urban Development Act 1993
Under the 1993 Act, if you have owned your flat for more than two years you are entitled to an extension to the length of your Lease. You must also hold a long lease which means it was originally granted to last more than 21 years. There are some exceptions that apply but we can advise you on this in more detail.
What are you entitled to?
A 90 year extension to the remaining term of the existing lease
A peppercorn ground rent
Process
The process is started by the Tenant serving a notice on the Landlord (section 42 Notice) and this notice would include the premium which we believe should be payable for the Lease Extension. Your Landlord would then have two months to serve a counter notice. The counter notice must admit whether you have the right to a new Lease under the Act or not and if not, must specify the reasons why. The counter notice must also state which of the proposals in the notice are accepted, and specify counter proposals for any proposals which are not accepted. This is usually the premium so the Landlord must say what premium they would accept for a Lease extension.
Once your notice has been served, the Landlord can ask for a deposit of 10% of the premium proposed in your notice at any time. Your Landlord is also entitled to have access to your flat for the purposes of valuation after service of your notice, providing he gives you three days’ notice.
Why extend your Lease?
A longer lease will maintain or enhance your property’s value and make it easier to sell or remortgage.
Once the lease drops below 80 years the cost of extending it increases rapidly as the Tenant must pay the Landlord half of the increase in the lease’s value that results from the lease extension. This uplift is called the “marriage value”.
After Receipt of Counter Notice
Once the Landlord serves a counter notice, (section 45 Notice) both parties have 6 months to agree the premium payable and the terms of the new Lease.
Blakes will then be negotiating the premium with the freeholder’s surveyor. In the meanwhile, Arcadia Law will be dealing with the draft lease. We will up to 6 months from the date the counter-notice is served to agree on both the premium and the terms of the new lease.
How much will it cost ?
Valuation fees
Negotiations (if required)
Legal fees
Freeholder’s Reasonable fees
Lease extension premium
For a more precise calculation, book a free consultation with us.
Completion
Once premium agreed, Arcadia Law will complete on the lease extension and register the lease at the Land Registry.
How long will it take?
The Lease Extension will usually take between 6 – 12 months depending on how efficient and reasonable your Landlord is.
A brief overview of case studies from the numerous clients who have received support and expertise from Blakes
195
Lease extensions
800
Total premiums agreed
143
Act across different locations in Merton
Farnham Gardens SW20 0UE
Farnham Gardens SW20 0UE
Farnham Gardens SW20 0UE
