There are significant benefits to be gained by extending your lease. Changes in the law mean that property owners now have the automatic right to get a lease extension or in some cases enable you to acquire the freehold to your premises. Lease extensions increase the value of properties. But many of our clients do not know about this opportunity which is why we wanted to explain it to you directly.
Why extend your lease today?
For every day you leave your lease un-extended, your property loses a bit of its value. The shorter your lease, the less its worth and the more expensive it becomes to extend it. Short leases have a significant impact on the sale price. For leases that are less than 80-85 years the data shows that many buyers are put off altogether and at sub-70 years banks are put off offering mortgages. At the same time, for those leases sub 80 years, the extension price dramatically rises.
Extending the lease under the ‘90-year lease extension’ program, now automatically entitles leaseholders not only protection against the devaluation of the property but often has the effect of reducing your ground rent to zero.
Why use Cavendish Legal Group?
As the largest property firm in London and the South East, we have established our business purely by word of mouth. We don’t run ads, we don’t cold call. We do however, provide a boutique style specialist service that our clients truly appreciate.
Cavendish Legal Group are offering a FREE 30 minute complimentary consultation so you can establish how much your lease extension will be worth to you personally.
Cavendish Legal Group are specialists in enfranchisement and lease extension work. This means we are efficient, professional and savvy and will know how best to maximise your value while minimising your costs.
Cavendish Legal Group is rated as excellent by both the Law Society’s Lexcel and Conveyancing Quality Standard. These are independent quality control institutions that monitor all professional legal service firms in the UK.
All Cavendish Legal Group matters are run by expert Solicitor teams overseen by our experienced team of Partners.
Cavendish Legal Group are easy to work with; get in touch by phone, by email or pop in to see us at one of our locations in London and the South East.
What is a lease extension and what are the requirements?
Under legislation known as the Leasehold Reform, Housing and Urban Development Act 1993 (as amended), leaseholders are entitled to claim a statutory lease extension which enables them to force their landlord (often their freeholder) to grant them an extended lease of their flat.
The requirements to claim a statutory lease extension are that:
You have owned your flat for at least 2 years.
Your lease is a ‘long lease’ i.e. granted for more than 21 years from its original term.
We will be able to see from records that you will have owned your flat for over 2 years now and you have a long lease. As such, you will be eligible to apply to your appropriate landlord for a lease extension.
A lease extension can either be agreed with the freeholder (i.e. outside the statutory legal framework i.e. by way of negotiations between you and the freeholder), or by way of following the statutory procedure.
How does this benefit you?
In return for you paying an agreed premium (assessed at the correct market rates), your lease will increase by a further 90 years. It will also turn your existing liability in relation to ground rent into a peppercorn – i.e. zero! As you will have exercised your right to extend the lease, your landlord cannot resist the extension so long as you qualify to extend your lease and comply with the necessary procedure.
The advantages of getting a lease extension are:
It will maximise the value to your flat which is important irrespective of whether you are intending to sell it in the short term or not; and
If your lease is extended then your flat will be easier to sell, once you decide to sell it. The reason being that most mortgage providers will require that the remaining lease term is of a required minimum length before they agree to lend money on a property. This will avoid you having to agree what could be a substantial reduction of the purchase price.
The general rule is that as the lease becomes shorter, the more expensive it will become to extend it. In actual fact, as soon as a lease has less than 80 years left to run, under current legislation, the freeholder is entitled to calculate and charge an additional premium when granting you your lease extension. Therefore our best advice – contact us now so we can start the process for you!
Jonathan Frankel (Partner)
Jonathan Frankel is a Partner at Cavendish Legal Group and is head of both our Civil Litigation and Private Client departments. After completing his law degree at the University of Central England, Jonathan joined GTC Law to complete his training contract. During his time at GTC Jonathan displayed a talent for both efficient and sympathetic client care. As a key member of the team, Jonathan was instrumental in growing and developing the practice, now merged to form Cavendish Legal Group and the largest conveyancer in London and the South East. Jonathan became a partner in 2010 and continues to actively drive the continued flourishing of the firm as a senior member of the management committee.
Jonathan has considerable experience in housing, landlord and tenant disputes, professional negligence, debt recovery, contractual disputes, negligence and nuisance cases, commercial and residential property disputes, and contentious probate and inheritance act claims.
Jonathan has also successfully developed a specialism in leasehold reform, including hostile claims for lease extensions, claims to purchase freeholds (collective enfranchisement), disputes regarding a leaseholder’s managing agent or service charges, rights to manage, and tenant’s rights of first refusal. Jonathan also deals with wills, probate, powers of attorney and deputyship applications.
Jonathan is a tough and experienced mediator but brings a warmth and empathy to the client-solicitor relationship. Frequently complemented for delivering beyond client expectations, Jonathan does not underestimate the personal and emotional stress which often accompanies legal proceedings. This approach allows Jonathan to mediate acrimonious and often highly confrontational negotiations while protecting clients, which affords the best outcome for those clients by supporting them holistically. Jonathan has an excellent track record for litigating cases through to final trial in instances where a good commercial settlement is not available.
Jonathan has built a strong and dynamic team of experienced solicitors and support personnel, accessing the full expertise across the London offices to ensure that solutions are tailored uniquely to each client case. This flexible approach delivers outstanding results, is flexible and repeatable as appropriate for clients. Jonathan is part of the pioneering Partner Oversight method which characterizes Cavendish Legal Group’s solid reputation.
“I am pleased to provide a testimonial for Jonathan Frankel and his team at Cavendish Legal who have assisted me personally and professionally during the past five years or so. The way in which they have looked after matters has kept stress levels to a minimum and the end results completed on time with minimum fuss. I will be happy to use the services of Jonathan Frankel and Cavendish Legal and hopefully continue to develop a closer working relationship”
Philip Waterfield, Strettons
“We’ve acted for hundreds of clients who have increased the values of their properties by instructing on this fairly straightforward process. From first call to completion in just a few easy steps. And for the client, the whole thing is hassle free”
Jonathan Frankel, Senior Partner, Cavendish Legal Group