Check if you are entitled to extend your lease.
If your answer is yes to all 3 questions, you can extend your lease by an additional 90 years.
You initiate the purchase process by serving a ‘section 42 notice’ (see below) on the competent Landlord of the property. You have to state the premium price of the lease extension in the notice (which must be a justifiable amount). Therefore you should obtain a surveyors valuation before serving the notice.
Once you have obtained the valuation, you will then serve ‘section 42 notice’ on the landlord, advising that you are instigating your right to a lease extension on near identical terms of your current lease. You may choose to negotiate your leasehold extension premium with the Landlord before serving the notice.Once you have served the notice:
The Landlord has at least two months to respond to the notice by serving a counter-notice. The Landlord may:
What if the Landlord is missing?
If the Landlord is missing, you can apply to the county for a vesting order which will in essence place the obligations of the landlord in the hands of the court in respect of executing your lease extension. In satisfying the court to do this, you will need to take steps to trace the landlord before making such application, such as hiring a tracing agency.
It is common for the freeholder to wish to have their own valuation on the property which by law they are at liberty to do and subsequently serve a counter notice with a different amount proposed for the premium. In such a case the Surveyors will then enter a negotiation stage. If a compromise cannot be reached, you are at liberty to apply to have the First Tier Tribunal (Property Chamber) (formerly known in England as the Leasehold Valuation Tribunal(LVT) make the determination for you.
Apart from price, other such challenges may include:
If the landlord does not agree to your lease extension on an amicable basis, you can apply to the First Tier Tribunal (Property Chamber) (formerly known in England as the Leasehold Valuation Tribunal LVT).
a completion statement will be delivered. As mentioned above this will take into account the landlord’s reasonable legal and surveyor costs in the statutory process which by law is payable by you. If agreed the conveyancing process can be concluded in the drafting of deeds and with the transfer of fund. Finally you are then able to register your new lease extension with the Land Registry.
As Solicitors, Ringley Law handle and case manage a broad range of litigation matters at Court and Tribunal. For advocacy we have relationships with all the leading Barristers Chambers to best present your case.
Did you know .....
if you want to buy a short lease flat the seller can serve notice to claim a lease extension leaving the buyer to take this forwards.
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