The informal lease extension process is available to 100% owners, where Flagship Housing Group Limited (FHG) is the freeholder or where FHG has a lease that is substantially longer that your underlease.
The process of extending your lease usually takes between three and six months.
You can start this process as soon as you complete the purchase of your home.
We’ll also consider allowing buyers to start the process before the sale completes if this will facilitate the sale.
Step by step guide
Step one - lease extension valuation
We require a lease extension valuation survey to be carried out by a RICS qualified surveyor This will be for you to arrange and will be at your own cost. The valuation will be valid for 3 months and can be extended for a further 3 months. At the time the lease extension completes we must be in possession of a valid valuation and it will be your responsibility to provide this.
The law sets out a framework that is used to work out the premium. This is based on the number of years left on your lease and the current market value of your flat. It also takes into account any ground rent payable.
Step two - offer
We will offer you the lease extension at the price set by the surveyor in a formal letter. We will not enter into any negotiation of the premium.
Step three - instruct a solicitor
You will need to instruct a solicitor to deal with the lease extension. You will need a solicitor unless you are an expert in leases and Land Registry registrations. If you have a mortgage, they will also need to give their consent to the lease extension and your solicitor will deal with this too.
You will need to provide our formal offer letter to your solicitor so that they know what you have agreed to and it will also provide details of our legal team. We will instruct our own solicitors who will work with your solicitor to complete the Lease extension.
- You will need to pay for the surveyor’s fees
- You will need to pay the premium
- You will need to pay our legal fees of £950 (+VAT and disbursements)
- You will need to pay your own legal fees and disbursements (your solicitor will advise you of these costs)