Two options for extending your lease Informal procedure


If your landlord is willing to negotiate an informal extension of your lease, there are no restrictions on the terms which can be agreed, including an increase in ground rent.


If for any reason it is not possible to negotiate an extension of your lease informally, the statutory procedure will have to be invoked in order to proceed.


It is always recommended that you seek advice from a surveyor and a solicitor before agreeing to a new lease, whether formal or informal. Agreeing to onerous terms can make your property unmortgagable should you come to sell at a later date.


Statutory Lease extension


A surveyor uses a formula outlined in the Leasehold Reform Housing & Urban Development Act 1993 (as amended) to calculate how much you need to pay the landlord to extend your lease.


This price is included in a formal notice which is then served on the landlord. This is called a ‘Section 42’ notice.


This initiates a time-line for the landlord to serve a counter notice and a deadline which must be met in order to agree the premium payable and finalise the new lease.


See our lease extension time-line on page 7.


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