Residential and Commercial leases will need to be extended or renewed towards the end of the lease terms if the Landlord / Freeholder and the Tenant / Leaseholder are able to continue with the relationship.
Commercial Leases will be the subject of negotiation between the parties from an early stage and the negotiations will depend on the terms of the previous lease (and whether relevant provisions of the Landlord & Tenant Act 1954 are excluded or not) and the new terms under which the leasehold title is to be held by the leaseholder. Very often, the lease will need to be modernised or amended to comply with Land Registry practice regulations to ensure that the leasehold title is properly registered. We can provide independent advice to the commercial landlord or tenant on the contents of the proposed new lease, even where the parties have been involved in a business relationship before.
Residential Leases can be renewed and extended by the tenant at any time and the tenant has statutory protection and power to extend and renew the lease against the landlord. The procedure for extending residential leases is regulated by Acts of Parliament which require that certain notices must be served by the parties on each other within certain time limits. The most common extended term is an additional 50 years to the term remaining on the existing lease. Leaseholders should remember that mortgage lenders are very reluctant to lend against leases with fewer than 75 years remaining on a lease, so if a leaseholder is thinking of selling a leasehold property with fewer than 80 years on the lease, then renewing the lease before marketing the property will be a good marketing tool and may add a significant value to the sale price. If the leaseholder has a mortgage secured against the property, then the mortgage lender will need to be represented and will need to grant its consent to the extended lease term. We can assist in all aspects of extending and renewing residential leases.
Leasehold enfranchisement involves the taking over of the freehold and the management of the estate from the landlord by the leaseholders where the majority of the leaseholders of a building vote to do so. Certain statutory procedures and time limits apply so careful management is necessary to achieve a good result.