Camden Lease Extension

Mo Miah | May 2024

The Leasehold Reform Housing and Urban Development Act 1993 (also known as a statutory or formal lease extension) provides you with the legal right to extend your lease by 90 years, reduce your ground rent to zero and keep the other terms in your lease much the same.

Whether you live in Hampstead, West Hamstead or Holborn, Homehold offer an all-in-one service, using in-house lease extension surveyors and solicitors to assist in your lease extension.  We have significant experience in working in the London Borough of Camden and we have worked on all different types of properties.

No matter what type of property you have, Homehold has the experience in valuing a range of various styles of properties. The London Borough of Camden has a great collection of diverse styles of properties for example recently we have worked on:

  • Grand period conversion flats, for example such as one in Oseney Crescent near Caledonian Road.
  • Local authority purpose-built developments, such as Falcon, which is a red-brick development on Old Gloucester Street close to The British Museum.
  • A charming split-level maisonette on Kingswear Road nearby to Tufnell Park.

Whatever shape or size your property is: you can feel confident that Homehold will get you the best deal for your lease extension.

Are you looking for help with a lease extension?

Who can extend their lease in Camden?

The Leasehold Reform Housing and Urban Development Act 1993 entitles you to extend your lease by 90 years (from its current years remaining) and reduce your ground rent to zero. This certainly the case if the London Borough of Camden is your freeholder.

However, there are two exceptions which would stop you from extending your lease. The first exception is if you own a flat part of the shared ownership scheme (and you haven’t stair-cased to 100% yet). The second is if you haven’t owned your flat for a minimum of two-years yet (if you are close to the two-year mark, we can start the valuation work and then serve notice to freeholder when you become eligible).

How much does a lease extension cost?

There are three primary factors which determine the cost of extending your lease:

  • The value of your flat
  • The number of years you have left on your current lease.
  • The amount of ground rent you pay yearly.

Usually, the flats where the London Borough of Camden is the freeholder have a reasonable lease length and this is because most local authority flat were leased from the 1980s with a 125-year lease. These flats typically have a £10 ground rent which is paid yearly. Due to the moderately short leases and low ground rent, the cost to extend the lease is a comparatively modest amount.

However, if your freeholder is a private freeholder, you can assume your costs will be higher particularly if you have a short lease or if you have a higher ground rent that increases over time.

For example, we did a case on Shirlock Road in Gospel Oak and in this case the freeholder was a private individual, the lease was below 80 years and had a £100 ground rent. Due to these factors, the costs were significantly higher than it would be in a typical local authority purpose-built development. Our valuation team did a thorough valuation which correctly identified the cost of the premium and then subsequently negotiated a good deal with the freeholder, whilst the legal team handled all the necessary conveyancing work.

What’s the process?

Homehold offers a fixed fee service which covers the lease extension process from A to Z. We look after your lease extension with great care and attention whilst steadily keeping you updated along the way.

Our service includes all the necessary valuation, negotiation and legal work that is required, including any disbursements. The legal work is carried out by Leasehold Legal Services, which is a specialist law firm that we own. LLS are authorised and regulated by the Solicitors Regulation Authority.

Stage 1: Preparation and Valuation

To start off your lease extension, LLS will begin by reviewing all the documents relating to your flat and development by pulling these directly from The Land Registry. They do this promptly to ensure there are no unpleasant surprises in the future.

Once everything has been checked and the legal team will relay the pertinent information to the valuation team, who can then commence work on the valuation report. This will give you an idea of how your premium will cost and allow the team to gather evidence to use for negotiation.

They will be looking for similar style flats that have sold in recent history, which can be in your development / road and in the wider market. The data will be analysed so that the team can work out an accurate valuation range for your flat.

For example, if you own a purpose-built flat within a local authority estate in Kings Cross, they will mainly try to find similar sales with your development or developments which are part of your freehold title. We use these comparables because more often than not the sizes and styles are much the same. However, if you own a period conversion flat in Kentish Town, it is harder to find similar flats as each conversion is unique and different to each other.

Stage 2: Notice Serving and Negotiation

Once you are happy with the valuation report and ready to move ahead, LLS will serve notice to your freeholder via a document called a ‘Section 42 Notice’. This document asserts your right to extend your lease by 90 years, eliminate your ground rent, and maintain your existing terms in your lease, whilst making an offer of how much you would like to pay.

Your freeholder then has around two months to come back with their Counter Notice (called a Section 45) and we expect them to come at a higher price too.

Our valuation team will then fight on your behalf to make sure we reach a fair and reasonable price. They will use evidence and calculations to argue with your freeholder’s valuer and unlike most other firms, we don’t charge for negotiations by the hour.

We’ll continue negotiations until you are happy with the price you want to pay. You then make the final decision however we’ll advise you on which direction you can take. We’ll send you weekly emails to keep you in the loop and update you on progression (even when there isn’t any news yet!)

Stage 3: Conveyancing and Completion

Once the premium has been agreed with your freeholder and you are happy to move forward, LLS will start the legal work to get your lease extension over the line. This can range from six weeks to four months (depending on how quick the legal team on the other side are).

Your freeholder’s legal team will produce a document which effectively extends your lease by 90 years, removes your ground rent, and keeps the terms the same. This document gets checked line-by-line by LLS.

Finally, once the lease has been agreed, the legal can get this registered at The Land Registry. There is a fee to do this, however we have included this as part of our fixed fee.

What do Homehold charge?

Our fixed fee of £2,400+VAT covers all the crucial valuation, negotiation and legal work performed by our specialised law firm, Leasehold Legal Services. This includes any disbursements (additional fees) like Land Registry fees.

We don’t charge the whole fee upfront; this is spilt into three equal payments of £800+VAT.

At Homehold, transparency is key and that’s why our fixed fee doesn’t have any hidden charges or surprises.

Why use Homehold for your lease extension?

We have lots of experience in working in the London Borough of Camden on a wide range of different types of flats. This includes local authority blocks, period conversions and modern developments in areas such as Camden Town, Euston & Hampstead Heath.

“Due to the London Borough of Camden being a diverse area which covers different subsections, I find myself valuing a new flat in Camden on a regular basis. This also means, I am consistently engaging in meaningful negotiations with the external valuer that the London Borough of Camden use."

Mo Miah - Valuer

Hear it from another flat owner in Camden

It has been just under a year since Homehold finalised the lease extension for my London flat. I discovered Homehold through an online search in the nick of time, literally hours before I was about to sign with another, very expensive firm. I was overseas at the time, completely stressed out, but somehow convinced that there had to be a better way than paying a seven figure amount at the outset, t

Dr Bright - Camden

Start your lease extension in Camden today

Article author photo

Mo is one of our valuation team at Homehold. He is passionate about ensuring that leaseholders get a fair price on their lease extensions. Mo has been working in London property for his entire career, and he is particularly well versed in Local Authority and Housing Association stock.

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