Lease Renewal Service

The Legal Stuff

Pursuant to the Leasehold Reform, Housing and Urban Development Act 1993 (the Act which gives flat owners the right to extend their lease) owners of a long lease (more than 21 years) who have been registered proprietors of their flat for more than 2 years and pay a nominal ground rent (for example £100 p.a) are entitled to extend their leases by 90 years on top of their existing term and reduce ground rent to nil (or one peppercorn as we say in the law).

Starting the process

In order to start the process we need to know the amount you wish to offer by way of a premium. In order to ascertain a “reasonable” premium to offer you should instruct a surveyor.

Once we have received your valuation advice from your surveyor the lowest possible (but justifiable) premium this is inserted into the Initial Notice which is the formal notice that commences your claim (known as a Section 42 Notice). The Section 42 Notice is then served on your landlord and, if applicable, any third party or a head leaseholder.

Your landlord's obligations and entitlements

Your landlord has two months in which to respond with their Counter Notice (known as a Section 45 Notice) which will include the price they want for the new lease. Your landlord is also entitled to request a deposit of 10% of the premium you have stated in your Section 42 Notice which is payable within 14 days from the demand.

If the landlord does not serve a Section 45 Notice within two months from the date you serve the Section 42 Notice (which is unlikely) you can apply to the Court for an order that the new lease be granted on the terms of your Section 42 Notice (and importantly the new lease to be for the price you have stated in your Initial Notice which is will be the lowest justifiable premium).

If a Section 45 Notice is served by the landlord we negotiate the new lease costs and attempt to agree a price.

If a price cannot be agreed

If a price cannot be agreed after two months from service of the Section 45 Notice then you have a window from this date until 6 months from the date of service to ask the Leasehold Valuation Tribunal to determine the price. If this application is not made within 6 months from the Section 45 Notice you will have deemed to have withdrawn your claim. You will then be liable for the landlord’s costs, your own costs and will not be allowed to make a further claim for 12 months. To ensure you do not miss this deadline (and for other reasons detailed in 'what makes us difference') our fixed price includes this protective application.

Once all terms have been agreed to have a further 4 months to complete the Lease Extension (i.e pay the premium and the landlord’s legal and surveying costs). If you do not complete within 4 months you will have to make an application to the Court for a vesting order failing which your claim is deemed withdrawn. The price of this application is not included in our fixed price since it will be up to you to organise the finance to complete the lease extension within this time scale.

Recommended by

"Through their Lease Clinic, Comptons have simplified the lease renewal process. Their expertise in this field is reassuring to all those involved and most definitely minimises the anxiety and delays caused by having to extend these shortening leases"
KFH