Lease extension solicitor

How much does a lease extension cost?

There are two main parts: my legal fee, which is fixed and published on the Fees page, and the premium you pay the landlord for the longer lease.

The premium depends on your lease and is worked out by a specialist valuer, not by me. You will also pay your valuer’s fee, and you may have to pay some of the landlord’s costs. I explain each of these when I quote, so you can see the whole picture before you start.

How long does a lease extension take?

As an estimate, 3 to 6 months for an informal extension, and 6 to 12 months or more for a statutory extension. This is an estimate, not a promise. It depends on things outside my control, such as how quickly the landlord responds and whether the premium is agreed.

Informal or statutory: which route?

There are two ways to extend a lease.

• Informal route: you negotiate directly with the landlord. It can be quicker, but the landlord does not have to agree, and the terms offered can differ from those of a statutory extension, for example on ground rent. I check any terms the landlord offers before you agree to them.
• Statutory route: if you qualify, the law gives you the right to a longer lease, usually at a peppercorn ground rent. The process follows set steps and deadlines, starting with a section 42 notice.

Whether you qualify depends on your lease and your circumstances, and I will confirm this when you get in touch. I check whether you qualify, and explain both routes, before anything is sent to the landlord.

What is a section 42 notice?

A section 42 notice is the formal notice that starts the statutory lease extension process. It is served on the landlord on your behalf.

It is named after section 42 of the Leasehold Reform, Housing and Urban Development Act 1993. The notice sets out your proposed premium, based on your valuer’s report, and gives the landlord a date by which to reply with a counter-notice. If the premium or the terms cannot be agreed, either side can apply to the tribunal to decide them. The process has strict deadlines, and I keep track of them for you.

What is a peppercorn ground rent?

A peppercorn ground rent means that, in practice, no ground rent is payable. The landlord cannot demand any money for it.

The phrase comes from the old practice of charging a single peppercorn as a token rent. A lease extended through the statutory route usually reduces the ground rent to a peppercorn. On the informal route, the landlord may propose a different ground rent, so I check the ground rent terms in any new lease before you sign.

Do I need a valuer?

Yes. A specialist valuer works out the premium, and on the statutory route the section 42 notice relies on that valuation. You choose and instruct your own valuer, and I work with them. I do not give valuation advice.

How it works

1. You tell me about your flat, your lease and whether there is a mortgage.
2. I send you a fixed-fee quote and tell you which firm will act for you.
3. Identity checks and documents are handled online.
4. Your valuer values the lease extension, and I check whether you qualify for the statutory route.
5. I serve the section 42 notice, or open negotiations with the landlord, and deal with the landlord’s solicitor.
6. I check the new lease, deal with your lender’s consent if you have a mortgage, and you sign online, or by post where that is needed.
7. I complete the new lease and register it at HM Land Registry.

Fees

My fixed fees for an informal lease extension, a statutory lease extension and the tribunal stage are on the Fees page, shown plus VAT and including VAT.