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An owner of a residential long lease (a lease originally granted for more than 21 years) is able to extend their lease. Doing so can be important depending on how many years are currently remaining on the lease. In general terms, the shorter the lease, the more exponentially expensive it is to extend.
This is especially so for leases that are soon to fall below 80 years; it is after this point that an additional factor known as “marriage value” becomes payable. It is therefore important to start the process in advance of this.
Conversely a Landlord will understandably want leases to fall below this number of years as this will net them a greater return.
There are effectively two ways that a lease extension of a flat can be granted:-
1. Under the 1993 Act, by way of the tenant serving a notice on the landlord. This is known as a “statutory lease extension”.
2. By a voluntary agreement between the landlord and the tenant. This is known as a “voluntary”, “informal” or “non-statutory lease extension”.
Which to choose is often a question that tenants ask, and the answer to this is far from straight-forward, and sometimes, depending on the landlord, the second option may not be possible.
Each has their own advantages and disadvantages. We are able to assist in coming to a decision on which route to take.
We can act for landlords or tenants, and the below links contain frequently asked questions we receive from each as well as our respective answers: