GUIDANCE

The Lease Extension
Statutory Timeline

This is the process involved with extending a lease under the 1993 Act

OBTAIN A VALUATION

Step 2
Obtain a valuation from an expert Chartered Surveyor to establish both the estimated price of the Extension, but also what "Offer Price" you should use for your Claim Notice.
There is a negotiation stage later so you will need to appoint a Surveyor from the start.

CREATE AND SERVE YOUR SECTION 42 NOTICE

Step 3
This Notice must be signed, dated, specify a deadline as to when a counter-notice must be received by from the Landlord (such deadline which must provide at least 2 months). Once the Notice is given ("served") upon your Landlord, it creates a binding statutory contract with him. Importantly the notice should then be registered at the land registry to prevent a possible means of escape by the landlord in selling the freehold.
2 months

LANDLORD'S REQUESTS

Step 4
The Landlord is entitled to the following:-

1. Access to your property to carry out a valuation.

2. Copies of your title register to prove your qualification

3. 10% deposit payment of your offered price or £250 (whichever the greater)

LANDLORD'S COUNTER NOTICE

Step 5
The Landlord gives a Counter Offer in response. This Counter Offer represents the Landlord's highest acceptable price and is essentially designed to reserve the Landlord's bargaining position
6 months (max)

NEGOTIATIONS

Step  6
Negotiations should take place for the lease extension purchase price (the Premium) as well as the form of final wording to be contained in the newly granted lease. By law this stage can only take the maximum of 6 months before the law requires that the leasehold must apply to the Tribunal. Failure to do so renders the lease extension claim as withdrawn by law.

TRIBUNAL APPLICATION

Optional Step
If the price or the wording of the lease cannot be agreed through negotiation, then the First-tier Tribunal must be asked to decide it.
within 4 months

COMPLETION

Step 7
Completion is the transactional stage which seals the deal. It occurs once the paperwork is signed by all parties. The leaseholder must complete within 4 months of either the date an agreement of the lease extension terms was reached with the Landlord, or the Tribunal deciding them. If this does not look possible, the leaseholder must apply the County Court within that 4 month period, otherwise the lease extension claim is automatically withdrawn by law
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