Lease extensions

Why is lease extension important?

The main reason to extend the lease is to ensure that the value of one of your main assets is preserved, adding an additional 90 years secures your asset and provides financial peace of mind.  Any lease with less than 80 years remaining is regarded as a short lease. It is very important that you know the length of your lease, and that you do not allow it to fall below 80 years because:

  • For technical reasons the cost of extending the lease increases sharply.
  • Once the 80-year mark has passed, remortgaging the property can also be difficult as some lenders will not lend money to those wanting to buy or remortgage, if they have a short lease. 

What are the options?

There are two ways you can extend your lease, and both come with certain eligibility requirements, as well as with some benefits and limitations as described on this page. Please note, whichever lease extension process you decide to follow, we would always recommend you to seek legal representation to help you go through each step of the process, and to prevent any delays.

How to apply?

First, check below if you are eligible to extend your lease. You will need to answer 'Yes' to all questions asked in the eligibility check below. If you are, follow the steps listed in your chosen lease extension process. We hope the information below will help you to make that decision and start the process. For an independent advice visit Leasehold Advisory Service.

s42. Statutory Route Lease Extension

Benefits and Limitations

  • Timescales are set, and steps formalised.
  • Offers full level of legal protection.
  • Guarantees extension for another 90 years.

Eligibility Check

  • Do you own property for at least two years?
  • Do you have at least 21 years lease left?
  • Do you own 100% of the property?

*If you answered 'Yes' to all three questions than you are likely eligible.

Lease Extension Process

      1. Request it

Please note, we always recommend residents to seek legal representation when applying for lease extension. If you do have legal representation, your solicitor will complete for you this document and will send it to us on your behalf. If you do not have legal representation, follow the steps below:

STEP 1 - Complete 's42. Statutory Lease Extension Application', and deduce the title.

Deducing title:

  • Copy of the Land Reg title - deducing title
  • Copy of the Land Reg plan
  • Official Copy Lease

A completed application must be signed with 'wet ink' and posted to us with other listed documents via recorded delivery as per below details. *Please note, we only acknowledge service if it is sent via recorded delivery. 

Our address: Homeownership Team, Milton Keynes City Council, Civic Offices, 1 Saxon Gate, Milton Keynes, MK9 3EJ.

STEP 2 - After we have received your application, we will review it, and if you are eligible and the applications is fully complete, we will provide you with payments instruction for relevant fees. The fees cover the costs involved in processing of the application and are non-refundable.

STEP 3 - We will aim to instruct for a valuation to be carried out to your property within 10 working days of receipt of the fee payment.

      2. Negotiate it

  • We MUST respond to you with our S45 counteroffer or acceptance within 2 months.
  • In our response we will either:

    a) agree to your terms, b) offer different terms, or c) reject your offer.

    If we reject your offer you WILL be able to challenge it.
  • We will expect you to respond to our counteroffer within 12 months.

      3. Challenge it

  • You can refer the request to the first-tier tribunal if we cannot agree terms you will be happy with. In such case, they will determine the terms which you can either agree to or you can withheld your request.

      4. Formalise it

  • If we agree to terms, we will need to formalise your lease extension.
  • We advice you to seek legal advice when singing legal documents.

Informal Route Lease Extension

Benefits and Limitations

  • Does not have strict time limits, but it is usually faster than statutory.
  • Council is not obliged in law to enter in to the process and can withdraw at anytime.
  • The terms, like lease duration, may not be favourable to the tenant.

Eligibility

  • Do you own property for at least two years?
  • Are you a Shared Owner or a Leaseholder?

*If you answered 'Yes' to both questions than you are likely eligible.

Lease Extension Process

      1. Request it

Please note, we always recommend residents to seek legal representation when applying for lease extension. If you do have legal representation, your solicitor will complete for you this document and will send it to us on your behalf. If you do not have legal representation, follow the steps below:

STEP 1 - 

If you are a Shared Owner complete 'Shared Ownership Lease Extension Application'. 

If you are a Leaseholder complete 'Statutory Informal Lease Extension Application'.

A completed application must be signed with 'wet ink' and posted to us via recorded delivery as per below details.



*Please note, we only acknowledge service if it is sent via recorded delivery.



Homeownership Team, Milton Keynes City Council, Civic Offices, 1 Saxon Gate, Milton Keynes, MK9 3EJ

STEP 2 - After we have received your application, we will review it, and if you are eligible and the applications is fully complete, we will provide you with payments instruction for relevant fees. The fees cover the costs involved in processing of the application and are non-refundable.

STEP 3 - We will aim to instruct for a valuation to be carried out to your property within 10 working days of receipt of the fee payment.

      2. Negotiate it

  • We SHOULD respond to you with our counteroffer or acceptance within 2 months.
  • In our response we will either:

    a) agree to your terms, b) offer different terms, or c) reject your offer.

    If we reject your offer you will NOT be able to challenge it.
  • We will expect you to respond to our counteroffer within 12 months.

      3. Formalise it

  • If we agree to terms, we will need to formalise your lease extension.
  • We advice you to seek legal advice when singing legal documents.

   

How much does it cost?

Please note that Leasehold Operations are unable to advise on the price of your lease extension.

Our fees include:

Statutory Route Fees

  • £190 Administration fee
  • £800 (plus VAT) Valuation fee (statutory with service of S42 Notice)
  • £873.09  Legal fee (may increase if the matter becomes protracted)

Informal Route Fees

  • £190 Administration fee
  • £700 (plus VAT) Valuation fee (statutory with service of S42 Notice)
  • £873.09  Legal fee (may increase if the matter becomes protracted)

For independent advice follow the link below

Leasehold Advisory Service