05 Dec 23 by Rebecca Cook
What is a Lease Extension?
Under the Leasehold Reform Housing and Urban Development Act 1993, long leaseholders (tenants) have the right to extend their lease. The law gives qualifying Tenants the right to extend their lease by 90 years, in addition to the unexpired term they already enjoy, at a ‘peppercorn’ rent; this means there is no ground rent to pay.
Under the Act, the Landlord is entitled to receive a premium which is made up of potentially three elements; the reduction in the value of the Landlord’s interest, in qualifying cases a share of the marriage value and any reduction in value of an interest the Landlord has in another property or any other loss which comes as a result of such an interest.
Do I Qualify to Extend My Lease?
To be a qualifying leaseholder, you must have owned your property/long lease for 2 years and the original lease term must have exceeded 21 years when it was originally granted.
How Can We Help?
Vickery Holman have an expert team of Chartered Surveyors who specialise in this more complex area of valuation and provide lease extension advice in Cornwall, Devon, Somerset, and Bristol areas. As well as providing general advice, we will provide a ‘best and worse’ case lease extension valuation, as a guide to the possible outcome of negotiations. We will also negotiate the premium payable and other terms of the lease, and where required, represent at tribunal. If you are considering extending your lease or have been served notice by your Tenant, please contact a member of our team to discuss.