What do we mean by lease extension?

Just as with property itself, a lease of a flat is an important asset. As the number of years remaining in your lease falls, the value of your lease will naturally fall with it. Should you subsequently wish to sell or mortgage your lease then this reduction in value could leave you unnecessarily out of pocket. The current legislation allows a tenant to extend the lease of their flat so long as they meet the qualification criteria below.

Why should you extend your lease?

A qualifying tenant is entitled to apply for a lease extension on the same terms as their old lease with the following changes:

• A further 90 years will be added to the unexpired term of their existing lease;
• The rent will be varied to a peppercorn (ie. none at all);
• We may be able to remedy defects in your lease, thereby making it mortgagable or sellable.

There is no set figure for how much this procedure will cost. However, you will usually be required to pay the following:

• Your own legal costs (we will provide an estimate of these costs at the outset of your claim);
• The costs of instructing a valuer to value your flat;
• The reasonable legal and valuation costs of your landlord; and
• A premium to your landlord in return for the lease extension.

Further questions? View our FAQ's.

Do you qualify for a lease extension?

You may qualify for a lease extension if:

• You have a residential tenancy of the flat in question;
• The original term of your lease was over 21 years or contained the right of perpetual renewal;
• You have owned your flat for at least two years; and
• The landlord is not a charitable housing trust.

A flat will not qualify for a lease extension if it is:

• Within a cathedral precinct;
• Owned by the National Trust;
• Owned by the Crown.

This is subject to an investigation as to whether or not you have the right to claim a lease extension.