Q&A - Extending a lease when you own a share of freehold


Please could you let me know if I have to pay the management company to extend the Lease of my flat when I own a share of the freehold?



Many thanks for your query.

Leases are extended either by private treaty (i.e. agreement between the parties) or pursuant to statute.

Subject to meeting the qualifying criteria, you are entitled to extend your Lease by following the procedure laid out under the 1993 Act. This does require the payment of a premium, although premiums can vary wildly depending on a number of factors which are outside the scope of this response.

If you are extending by private treaty then the parties can agree such terms as they consider fit.

Arguably it may become a little circular if you are paying a premium as a leaseholder for your Lease extension, but that you are effectively paying it (or at least a share of it) to the management company of which you are a member.

It is perhaps a discussion to have with your fellow members and directors of the management company to see whether any decisions can be made as to how Lease extensions will be handled in such circumstances, particularly with regards to payment of any premium.


Cassandra Zanelli, Solicitor and Partner at PM Legal Services

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