There are two ways that this can be done. The first is to carry out a lease extension under the 1993 Act (provided you qualify, having owned the property for at least 2 years). Provided that this is the case you will have the right to add 90 years to the unexpired term of your existing lease. For instance if your lease currently has 65 years left to run your new lease will have 155 years.
Alternatively, you can negotiate with the freeholder directly for the sale of a lease extension which may be for varying lengths of term (e.g 125 years, 150 years, 999 years). Each of these would need to be ‘priced’ appropriately and it is likely the freeholder would want to receive a ground rent.
Under the statutory extension of the lease there is no more ground rent to pay. Assuming that your freeholder will not negotiate with you on a voluntary basis and if you want to have statutory control over the new lease terms and the premium, then it may be best to persue a claim for the new lease under the 1993 Act – assuming that you qualify.
- More information about extending your lease.