Qualifying for a Lease Extension

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Ashley Connell

Edited by Ashley Connell

Leasehold Enfranchisement Solicitor at Hetts


Who Qualifies for a Lease Extension?

The legislation covering the qualifying criteria can be found under Section 39 of the LRHUDA 1993.

Why Qualification Is Important

If you do not meet the qualifying criteria for a lease extension but still proceed with submitting a claim by serving a Section 42 notice, you will be liable for the freeholder's costs in dealing with the lease extension. This is true even if your notice is invalid and has no legal effect.

The freeholder has the right to claim costs from a leaseholder in these circumstances under Section 60 of the 1993 Act.

Who Can Claim a Flat Lease Extension?

Under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) in the United Kingdom, leaseholders of flats can qualify for a lease extension if they meet certain criteria:

  • Qualifying Tenure: Must have owned the flat for at least two years.
  • Original Lease Length: The original lease must have been for more than 21 years.
  • Qualifying Property: The property must be a flat.
  • Excluded Leases: Excludes business leases, very short leases, and leases where the landlord is a charitable housing trust.

Leaseholders meeting these criteria can extend their lease by an additional 90 years and reduce the ground rent to zero. This process involves legal and financial considerations and often requires consultation with a solicitor or leasehold advisor.

An important aspect of qualifying for a lease extension is ensuring that you have owned the flat for at least two years. However, for those in the process of purchasing a property and who have not yet completed the two-year ownership period, there is a way to overcome this hurdle. You can request the seller to serve and assign the benefit of a Section 42 notice to you. This allows you to initiate the lease extension process immediately after purchasing the flat, bypassing the need to wait two years before qualifying.

When the benefit of a Section 42 notice is assigned, the leaseholder who receives it assumes the rights and obligations under the notice. This can be particularly advantageous in a competitive housing market, as securing a lease extension early can help avoid future costs associated with a diminishing lease term. Consulting with a solicitor experienced in lease extensions is essential to ensure this process is handled correctly and in your best interest.

What About Shared Ownership Flats?

Unfortunately, shared ownership leaseholders must proceed through the informal route. I’ve written a more detailed article on shared ownership lease extensions.