Key stages of a Statutory Lease Extension 1. Checking eligibility


To qualify as a Leaseholder, you must own a long lease (must have been at least a term of 21 years from the date it was originally granted) and have owned it for at least two years. The Landlord cannot be a charitable housing trust and the lease cannot be a business or commercial lease.


2. Assignment of the application


Once the Tenant’s notice has been served, it may be assigned to a purchaser at the time of completion. This means that a Leaseholder can serve the notice and then sell the flat with the benefits of the notice. The purchaser will be able to proceed with the application immediately without having to meet the two year ownership qualification criteria.


3. Financial planning


Lease extensions can be costly so you should know how you will finance the process before you begin. If you withdraw your application after serving Notice, you are required to pay the Landlord’s reasonable legal and surveyor costs to the date of withdrawal, in addition to your own, whether the lease extension completes or not. Depending on the premium agreed, Stamp Duty Land Tax may be payable on the new lease


4. Identify Premium


Instruct your surveyor to calculate the likely premium payable to the landlord in exchange for the lease extension.


8.


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