How long do I have to pay for my lease extension?

by The Chartered Surveyor

Question

I need to extend my lease. I plan to fund the extension by re-mortgaging. However, I can’t apply for the mortgage until I know how much the lease extension will cost. How do I go about this in order to make sure I can pay for the lease extension when the premium is agreed, and before the offer expires?

Answer

This is not an unusual situation. In the first instance, you will need to instruct a surveyor to value the premium for you, and to suggest a figure for the notice of claim which you will have your solicitor serve on the freeholder to initiate the process.

Depending on the complexity of the case, it might be that your valuer provides you with a range of possible settlement figures, rather than an exact figure. Depending on the extent of the range, you might decide that you want to wait until the premium is agreed before applying for your re-mortgage, so you know exactly how much to apply for.

Once the premium is agreed, the freeholder can, after one month, serve a completion notice on you, specifying a date, at least one further month in the future, for completion. So, you have at least two months from agreeing the premium to organise finance, which ought to be plenty of time to re-mortgage.

You may also want to consider having an initial conversation with your bank, in order to ensure you are eligible to re-mortgage, before initiating the process and becoming liable for the associated costs.