Lease Extension Information

Lease Extension Procedure

The formal route to obtain a lease extension at this property is for the tenant’s solicitor to complete a form known as an “Initial Notice” which is then served upon the Freeholder (and any Head or intermediate Lessor). This Notice has to be signed by the tenant. This is normally served upon the Freeholder’s solicitors who will check whether the Notice is valid.

The Notice also must state the proposed premium for the lease extension (and any amount payable for any intermediate leasehold interest).

The Freeholder must respond within two months and normally in the intervening period the Freeholder instructs their Valuer to inspect the premises who will then prepare a valuation.

The Freeholder must respond by serving a Counter Notice which will state firstly whether he admits the right to obtain a lease extension and secondly the premium he considers correct.

If he does not admit the right to obtain a lease extension, then this can be referred to the County Court who will have an award of costs, if the non-admission was unreasonable.

Once an Initial Notice and Counter Notice have been served there are effectively two lines drawn in the sand between which the premium should lie. There is then a statutory period of two months for negotiation between the parties, normally carried out by their respective Valuers and at the end of the two month period, either party can refer the matter to the Leasehold Valuation Tribunal, (LVT) for a hearing. If at the end of a period of six months from the date of the Freeholder’s Counter Notice, neither party has referred the matter to the Tribunal, for a hearing, the matter fails.

Once the tenant’s Solicitor has served an Initial Notice, the tenant is responsible for the Freeholder’s (and any Intermediate Lessor’s) reasonable legal and valuation costs pursuant to the Initial Notice and the costs of any conveyance. These costs are regulated by Statute.

At the Leasehold Valuation Tribunal the freeholder and any intermediate leaseholder have to bear their own costs as does the tenant.

A Leasehold Valuation Tribunal Hearing normally lasts between half and one day, depending upon the complexity of the case and we have presented a considerable number of these cases.

The Tribunal result is then published, normally within c. two months from the date of the Hearing.

As an alternative to the above, it is possible to carry out “Outside of the Act” negotiations, on receipt of my valuation to see if terms can be agreed, without the complexity of using the Leasehold Reform Legislation. Depending upon the parties, this can be used to advantage, but, you should bear in mind that in these circumstances there is no referral to the Leasehold Valuation Tribunal.

We have been involved with a number of cases where initial “Outside of the Act” negotiations have not proceeded with the result that the tenant has to resort to going down the formal route anyway and in some circumstances where the freeholder has been left with abortive costs.

In those circumstances it would have been better for either party to insist on the matter proceeding under the Legislation.

Our preferred solution is to negotiate within the Act.

List of lease extensions of flats negotiated under the Leasehold Reform, Housing and Urban Development Act 1993

YEAR      BLOCK (NO OF FLATS WHERE LEASE EXTENDED)
2007      Coppen Court (1)
2007      Marina Court (2)
2007      Adderley Court (4)
2007      Briarswood Road (1)
2007      Grosvenor Court (3)
2007      Conifers (4)
2007      Madeline Close (1)
2007      Alexandra Road (1)
2007      Alderney Court (1)
2007      Priory Dene (1)
2007      Turbary Court (2)
2007      Conifers (3)
2007      Dorset Court (1)
2007      Warwick Court (1)
2007      Dawkins Road (1)
2007      Bourne Court (2)
2007      Lansdowne House (1)
2007      Gleneagles (10)
2007      Exbourne Manor (3)
2007      Chepping Dene (1)
2007      Strathaven (1)
2007      St Andrews (1)
2007      Carlton Grange (1)
2007      Freshwater Drive (1)

2006      Lindum Court (1)
2006      Woodside (1)
2006      Conway Court (1)
2006      Ravenscourt (1)
2006      Little Forest Mansions (1)
2006      Cavendish Court (3)
2006      Bargates (1)
2006      Anncott Close (1)
2006      Beverley Close, London (5)
2006      Exbourne Manor (2)
2006      Pine Grange (39)
2006      Gleneagles (1)
2006      Audley Lodge (1)
2006      Ashley Court (2)
2006      Broadlands (1)
2006      Overcliff Mansions (1)
2006      Belle Vue Mansions (2)
2006      Chepping Dene (1)
2006      Quarr House (1)
2006      Briarfield (1)
2006      Marina Court (2)
2006      Walmer Court (1)
2006      The Maitlands (1)
2006      Cedar Manor (1) 

2005      Meyrick Park Mansions (1)
2005      Crag Head (1)
2005      The Moorings (2)
2005      Hamble Court (3)
2005      Riviera (1)
2005      Hinton Wood (1)
2005      Braidley Mansions (1)
2005      Victoria Road (1)
2005      Hinton Wood (1)
2005      Lindum Court (1)
2005      Ashley Court (3)
2005      Woodland Grange (1)
2005      Coleman Court (1)
2005      Conway Court (2)
2005      Pine Grange (30)

2004      Salterns Point (1)
2004      Belle Vue Mansions (1)
2004      Briarfield (2)
2004      Broadlands (1)
2004      Little Forest Mansions (1)
2004      Alexandra Road (1)
2004      Hamble Court (3)
2004      Bodorgan Court (1)

2003      St Andrews (11)
2003      Hamble Court (21)
2003      Chepping Dene (1)
2003      Braidley Mansions (1)

2002      Exbourne Manor (2)
2002      Belle Vue Mansions (1)
2002      Pennington House (1)
2002      Sandacres (3)
2002      Allens Road (1)
2002      Durley Gardens (1) 

2001      Meyrick Park Mansions (1)
2001      Cavendish Place (1)
2001      Stourwood Avenue (1)
2001      Eden Court (1)

2000      Cavendish Place (1)

1999      The Chantry (1)
1999      Albany (1)
1999      Cavendish Place (1)

1998      Meyrick Park Mansions (1)

1997      Albany (1)
1997      Admiral’s Walk (1)