Extending my lease under the Leasehold Reform, Housing and Urban Development Act 1993
Under this law, you can extend your lease by an extra 90 years. As with our voluntary lease extension scheme, if we don't own the freehold of your property, you can only extend your lease through us by the extra 90 years if we have enough years left on our main lease to allow for it. Otherwise, you may need to contact the freeholder directly.
To be eligible to extend your lease in this way, you must have owned your property for at least two years, but you don't have to have lived in it for all this time.
How to extend your lease
- Ask your solicitor to send us an official notice, telling us that you want to extend your lease using your legal right, and how much you believe you should pay for the extra 90 years.
- You'll then need to arrange an independent valuation of your property to work out your offer price.
- Your solicitor will then need to send us a notice asking to extend your lease for 90 years, with the price you are offering to pay.
- We'll then get our own valuation done and use this to write back to your solicitor with our counter-notice. If we don't agree with the price you have offered, we'll offer another price based on our own valuation. You'll then need to decide whether to accept our counter-offer, or ask your surveyors to negotiate with our surveyors to agree a price between them.
- Once we’ve received your written agreement, we'll ask our solicitor to complete the lease extension. They'll contact your solicitor to manage your side of the paperwork.
After your lease has been extended, you'll no longer have to pay ground rent. This could mean that the cost of extending your lease under the legal right could cost more than the cost of extending it under our voluntary lease extension scheme.
Are there any other costs?
As soon as we receive the tenant’s notice from your solicitor, you're responsible for paying our reasonable costs, whether the lease extension is completed or not. We'll tell your solicitor the full cost and ask for it to be paid by the time the lease extension is completed, or if you decide not to go ahead with it, on demand.
As well as our legal and valuation costs, you may also need to pay us an administration fee if you need to increase your mortgage (if you have one) to pay for the lease extension if your lease requires you to.