Lease extension question

[Annietheacrobat]

About to start the process of extending the lease on a flat I own. Just under 80 years remaining.

I understand that I can do this either via a private treaty extension or otherwise serving a statutory notice.

I am on good terms with the freeholder and so have been advised to try for private extension first . Just wondered what the main advantage of doing a private extension is? Is it purely the cost?

Advice would be most appreciated.

If you negotiate outside the act you can come to any agreement you like, eg the lease goes back up to 99yrs, ground rent goes up to £x for a certain premium.

You need to have owned the property for 2 years to apply under the act.

Under the act you are entitled to an extra 90 years on your lease (so if it's currently 80 years it will become 170) and the ground rent becomes a peppercorn (ie nothing).

You will still need to pay your own and your freeholder's costs but usually they will be cheaper if agreed by private treaty as notices do not need to be prepared and served.

However, under the act there will be a strict timescale to work towards, sometimes lease extensions by private treaty can drag on which can be am issue if you're looking to sell.

Either way you should instruct a valuer to get an idea of a fair premium.

Also google lease-advice.org it's a really useful website.

Thanks for replying. That's interesting as I had assumed that a private extension would be faster.

Ok looks like the first thing to do is instruct a surveyor then.

It really varies annie sometimes going down the legal route sharpens the minds of the solicitors involved... Not always, every case is different.

You refer to being advised down the private extension route first but not the source of that information. As such not too sure if you have taken a look at the Leasehold Advisory Service website or not - may be worth it as a very useful source of information
www.lease-advice.org/