If you own a leasehold property in the UK, you may want to extend the leasehold agreement to increase the value of your property or to avoid complications in the future. Here are the steps to extend a leasehold agreement:
- Check if you are eligible: You are generally eligible to extend the leasehold agreement if you have owned the property for at least two years.
- Get a valuation: Before you start the process of extending your leasehold agreement, you need to know the current value of your property. You can get a valuation from a surveyor or a property valuer.
- Serve a Section 42 Notice: You will need to serve a formal notice called a Section 42 Notice on the landlord or the freeholder of the property. This notice states that you want to extend the leasehold agreement and includes the proposed premium (the amount you are willing to pay to extend the lease).
- Negotiate with the landlord: The landlord has two months to respond to your Section 42 Notice. You may need to negotiate with the landlord on the premium amount.
- Agree on terms: Once you and the landlord agree on the premium amount, you will need to formalize the terms of the lease extension.
- Complete the extension: Once the terms are agreed, you can complete the extension of the leasehold agreement. This may involve paying the premium and signing the new lease.
It is advisable to seek legal advice throughout the process of extending a leasehold agreement to ensure that everything is done legally and correctly.
