Do I need a solicitor for a lease extension?

What if your lease were running out faster than you anticipated? In UK property law, a lease is a fixed-term agreement between a leaseholder and a freeholder, commonly granted for 99 or 125 years. However, once the remaining term drops close to 80 years, urgent action is required. To navigate this important stage safely, it is highly advisable to consult a solicitor specialising in residential conveyancing.

Let’s explore why legal guidance can be crucial in securing your lease extension.

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What is a lease extension in the UK?

In the UK, a lease is a legal contract between a freeholder (the property owner) and a leaseholder (the tenant), granting the leaseholder the right to occupy a property for a specific period.

Key points to understand:

• Residential leases are typically granted for 99 or 125 years.
• As the remaining term diminishes, especially below 80 years, the property’s value decreases significantly, making it considerable harder to sell or remortgage.
• Leaseholders possess the statutory right to request a lease extension to protect their investment and maintain property value.
• The process is governed by the Leasehold Reform, Housing and Urban Development Act 1993, particularly for flats and maisonettes, establishing the comprehensive legal framework for lease extensions.

Do you legally need a solicitor to extend a lease?

Under UK law, there is no legal requirement for a leaseholder to instruct a solicitor when extending a lease. In principle, you can manage the process independently. However, the procedure is frequently legally complex and strictly regulated.

Important considerations:

• Extending a lease involves serving formal statutory notices, adhering to rigid statutory timeframes, and often negotiating the premium with the freeholder.
• Any procedural error or missed deadline can jeopardise the entire process or result in substantial additional costs.
• In practice, it is strongly recommended to seek advice from a solicitor specialising in residential conveyancing, particularly when following the formal route under the Leasehold Reform, Housing and Urban Development Act 1993.

When is a solicitor strongly recommended for a lease extension?

Although not legally required, instructing a solicitor is strongly advised in several common situations where legal and financial implications can be significant:

• When proceeding via the formal route (statutory lease extension): Regulated by the Leasehold Reform, Housing and Urban Development Act 1993, this process involves strict legal formalities: serving a valid notice, complying with statutory deadlines, and negotiating the premium. A solicitor ensures that each step is handled correctly, significantly reducing the risk of costly mistakes.
• When there is disagreement or poor communication with the freeholder: If the freeholder disputes the extension, challenges the proposed premium, or fails to respond within the required timeframe, legal support becomes essential to protect your rights and, if necessary, to take the matter to the First-tier Tribunal. (Property Chamber)
• When the terms of the new lease are unclear or potentially unfavourable: Clauses in the extended lease may include hidden fees or restrictive conditions. A solicitor can thoroughly review and negotiate these terms to ensure the lease remains fair, transparent, and in your best interests.

FAQs

1. How much does it typically cost to extend a lease in the UK? Costs vary depending on the property value, the remaining lease length, and legal and surveyor fees. In addition to the premium payable to the freeholder, you should budget for solicitor fees (typically £1,000-£3,000) and surveyor charges.
2. How much additional time does a lease extension usually add? Typically, a lease extension adds 90 years to the remaining term of the lease, while often reducing the ground rent to a peppercorn (effectively zero).
3. What happens if the freeholder refuses the lease extension request? The leaseholder can apply to the First-tier Tribunal to challenge the refusal and enforce their statutory right to a lease extension under the law.

Extending a lease in the UK may appear complicated, but with the right support, it becomes a secure investment to protect your property’s value.

Don’t let your lease expire!

Consult Qredible’s network to contact a solicitor specialising in residential conveyancing to breathe new life into your lease and secure your property’s future.

KEY TAKEAWAYS

• Extending a lease protects your property’s value by preventing depreciation linked to a short lease.
• While not legally required, a solicitor’s expertise reduces risks and simplifies the complex process.
• In cases of dispute or complexity, a solicitor is a valuable ally to defend your rights.
• Professional legal guidance ensures compliance with strict statutory requirements and deadlines.