Extending your Lease

What to do next

All qualifying leaseholders are entitled to follow the process set out in the Leasehold Reform Housing and Urban Development Act 1993 (the formal route). Some landlords also offer an informal process is also which can be simpler, less costly, and often quicker.

Choosing to follow either route does not commit you to proceed with extending your lease but the cost is likely to go up over time as the lease gets shorter and property values rise. Also the landlord's valuation and admin fee indicated below must be paid in advance and is not refundable so it is advisable not to proceed until you have or are able to put the necessary funds in place.

Informal

Complete a simple questionnaire. If you qualify to extend your lease, you will be asked to pay the Council’s valuation fee (non-refundable).

There are no strict timescales and variations of other lease covenants cannot be considered. However the Council will normally offer a fair and reasonable but non-negotiable price to extend your lease on the current terms with 4-6 weeks.

You will have 60 days to accept this offer and complete your purchase, after which the offer would be updated and a further revaluation fee of £195 + VAT would need to be paid.

The extended lease can always be transferred but informal applications themselves are not transferable. If this is important (perhaps you are selling your property) then a formal application may be more suitable. See ▶️

Council’s valuation and admin. fee: £800

Council’s legal costs £1,000

If you are not happy with the outcome you still have recourse to the formal route but this is likely to incur additional time and costs

Click here to begin

Formal

Instruct your solicitor to serve notice under s.42 of the Leasehold Reform Housing and Urban Development Act 1993.

The process is subject to strict timescales but variations of other lease covenants can be considered. By law you have the right to appeal the timescale, the price and the Council’s costs, to the Lands Tribunal or County Court

Statutory notices are usually served by a solicitor an in most cases you would also need professional valuation advice. Naturally these stages would incur professional fees.

The extended lease can always be transferred but formal applications are usually transferable before legal completion (which may be beneficial if you have agreed the sale of your property). Applicants should consult their solicitor first.

Council’s valuation and admin. fee: £800

Council’s legal costs £1,200

If you are not happy with the landlord's offer and your surveyor is unable to negotiate an agreed value with the landlord's, the case can be referred to an independent tribunal.

To begin, your solicitor should serve notice under s.42 of the Leasehold Reform Housing and Urban Development Act 1993 to hsg-servicecharges@croydon.gov.uk with copy to admin@ambercycle.co.uk

Inspecting your property

You will need to provide us with contact details for arranging an inspection of the property for the valuations. Inspections take place 9am – 5pm Mon-Fri and take up to 30 mins. The valuer will not collect keys so we ask for you or someone you trust over the age of 18 to be in attendance during this time. The inspection will require photographs and measurements to be taken so access should be provided to all rooms/areas. You may be asked for evidence for the cost and installation date of any improvements.

In all cases it is advisable to use a solicitor to make and register the final changes to the lease and title with HM Land registry. Whichever route you choose, legal fees will be more if you have a mortgage on the property as the solicitor will also need to act for the mortgagee.

You should obtain an estimate from your solicitor but, as a guide, this could cost around £1,000 + VAT. Legal costs under the formal route (including service of official notices) may be greater.

Further Queries

If you still have questions unanswered, please contact us and we will revert as quickly as possible. Or call 01923 220002 (08.30 - 17.30 Mon - Fri) if you need help with your application.

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