Provided you have a lease of originally 21 years or more in length, you are entitled to extend the term of your lease by 90 years on top of the remaining term at the date of your claim. You must have owned the leasehold interest for at least two years before making the claim. To save you having to wait for two years, it is sometimes important when you are purchasing a property, to arrange for the seller to serve a notice on your behalf and take an assignment of the benefit of that claim at completion.
The price you will pay is determined by a formula, which will be negotiated by a surveyor appointed on your behalf. It is extremely important to ensure that a claim is made before there is less than 80 years to run on your lease, because the cost of the extension will become much greater then, as you will be paying what is known as 50% of the marriage value (the additional value released by the tenant’s ability to merge the extended lease with the existing lease) to your landlord.
We have a number of lawyers who specialise in leasehold enfranchisement including lease extensions and, as a result, we are able to ensure the transaction runs as efficiently as possible.