Luton Lease Extension

Mo Miah | June 2024

Homehold is your one stop shop for all your lease extension needs, we take care of your lease extension from start to finish. Our aim is to get you a fair price on your premium while also providing you with a seamless service.

We do this with the aid of The Leasehold Reform Housing and Urban Development Act of 1993 (also known as the statutory or formal lease extension), which gives you the legal right to extend your lease by 90 years while reducing your ground rent to £0 and keeping the other terms in your lease pretty much the same.

We do this in conjunction with our in-house solicitors -Leasehold Legal Services. Our solicitors handle the Lease Enfranchisement process while we at Homehold handle the leasehold valuation of your flat and the premium negotiation.

We recently completed a lease extension on one of the flats in Berkely path. So, no matter the type of flat you own- purpose built or a period conversion we have the expertise needed to do an excellent job.

We are not limited to just the Luton area we have worked with different local councils and private freeholders around England.

Who can extend their lease in Luton?

Almost anybody who owns a leasehold flat in the Luton area can extend their lease. The reasons why you might not be eligible are:

  • You have not owned your flat for two years.
  • You purchased your flat under the ‘shared ownership scheme’ and you have not bought a 100% of the shares for your flat.

How much does a lease extension cost?

The cost varies from flat to flat as all flats are not the same. However, it boils down to these three majors factors:

  • How much your flat is worth,
  • The number of years left on your lease, and
  • How much ground rent you pay; if it increases – by how much it increases and how often it increases.

Flats with private freeholders tend to have a higher premium when compared to flats with local councils as their freeholder. This can be attributed to the fact that private freeholders tend to lease out flats with short leases and high ground rent. Also, if you have less than 80 years left on your lease, your premium will be higher because you will have to pay your freeholder a fee called the ‘marriage value’.

You can use our lease extension calculator or book a free phone consultation with someone on the team, who will explain the process to you in detail. 

What’s the process?

Homehold is a one stop shop for all your lease extension. Therefore, you can rest easy knowing we have all parts of your lease extension process covered from the valuation to the registration at the Land Registry. While also keeping you updated throughout the process.

Stage 1: Preparation and Valuation

To prepare for your lease extension, our in-house lease extension solicitors- Leasehold Legal Services, will get all the paperwork associated with your flat and the block or development from the Land Registry and review it.  This will give us a clear and complete picture of your property and what it entails.

Once this is completed one of the lease extension valuers from the Homehold team will conduct the valuation of your property. Then we send over this detailed report which contains the basis for our valuation and a range of how much you should be prepared to pay as your premium.

Stage 2: Notice Serving and Negotiation

This next stage will be handled by the solicitors at LLS who will serve your freeholder with the ‘Section 42 Notice’. This document states your legal right to extend your lease and how much you want to pay for it.

Your freeholder has two months to respond to this notice if they accept the price you want to pay. If they do not accept you will be contacted by one of the Homehold team to commence negotiations. We will negotiate until you are happy with the price, no matter how long it takes and at no extra charge.

Stage 3: Conveyancing and Completion.

After the premium agreement has been made, the solicitors at LLS will look at the details of what has been agreed. Your freeholder will send over the amended lease to our in-house leasehold extension solicitors-LLS who will look through to make sure that the only changes to your lease are-the term has been extended by 90 years and your ground rent is zero pounds.

Once this has been looked through and is satisfactory, your lease extension is ready to be registered at the Land Registry.

What do Homehold charge?

Homehold charges a fixed fee of £2,400+VAT, this fee is paid in three equal instalments of £800+VAT.

This fee includes all legal work done by LLS - which is regulated by the Solicitors Regulation Authority.

Why use Homehold for your lease extension?

We are passionate about providing a seamless and specialist service. So, you can be rest assured that we are the best firm for the job.

Hear it from another flat owner in Luton

We employed Homehold to help us through our lease extension and never regretted it. Linz kept us updated every week and although the freeholder did it's best to hold us up and be awkward at every turn we had no doubt we would get there thanks to Linz and his team. I would have no hesitation in recommending Homehold to help take the stress out of your lease extension.

Luton Flat Owner

Start your lease extension in Luton 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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