Redbridge Lease Extension

Mo Miah | July 2024

Using The Leasehold Reform and Urban Development Act 1993, you are permitted to add an additional 90 years to your lease, reduce your ground rent to £0/peppercorn and keep the other terms in your lease the same.

Homehold have a lot of experience in assisting leaseholders to extend their lease in Redbridge. Whether you live in Seven Kings, Gants Hill, Newbury Park or the other surrounding areas in the London Borough of Redbridge, we can help. We offer a service which encompasses everything you need on your side to extend your lease, and this includes all the valuation, negotiation and legal work – effectively acting as a “One-stop-shop!”

Regardless of the type of flat you own. Homehold have experienced valuers who can diligently work out the value of your flat, calculate the premium to be paid for your lease extension, and then negotiate with your freeholder. This is especially true if your freeholder is Redbridge Council, due to the number of cases we have done with them in the past.

For example, we did a lease extension on The Roses, Woodford which was a local authority purpose-built development which the London Brough of Redbridge is the freeholder. Another recent case was in Acorn Court, Ilford – which had a private freeholder. Homehold are equipped to deal with either type of freeholder.

Who can extend their lease in Redbridge?

If you are a leaseholder and own a flat in Redbridge, then you are almost guaranteed to be able to do a statutory lease extension. Particularly if the London Borough of Redbridge is your freeholder.

There are two common reasons why it might not be possible to extend your lease:

  • If you haven’t owned your flat for a minimum of two years
  • If you only own a percentage of your flat and the remainder is part of the ‘shared ownership’ scheme

How much does a lease extension cost?

There are three things you need to consider when paying for a lease extension:

  • The value of your flat
  • The number of years you have remaining on your lease
  • The amount of ground rent you pay

Flats that have been leased from the London Borough of Redbridge typically have reasonable lease lengths. This is because a lot of flats were initially leased from the 1980’s with a 125-year lease under the Right to Buy scheme. Usually, these flats will have a £10 ground rent to pay yearly. You can expect the lease extension costs to be comparatively modest compared to privately owned flats.

If you have a private freeholder, the lease extension costs will often be higher. This is because in some cases, there are short leases and high ground rents.

For example, we did a case on High Road near Goodmayes and Chadwell Heath. This flat had a lease below 80 years and a ground rent above £150, which also escalated over the term of the lease. Due to this, the costs were drastically higher compared to a local authority flat. Our valuation team did a fantastic job in negotiating with the freeholder to try and keep costs as low as possible and the legal team handled all the legal work

What’s the process?

At Homehold, we’re different from other firms and this is because we offer an all-in-one service to act on your side. Our all-in-one service covers all the necessary valuation, negotiation and legal work and this is done for a fixed fee. We work with full transparency and integrity to ensure you are completely involved in the process and you pay a fair price for your lease extension.

Stage 1: Preparation and Valuation

Prior to kicking off your lease extension, LLS, our legal team, will do a full review of all the documents relating to your flat and development. They do this nice and early in the process to make sure we can swiftly get started with your lease extension.

Once they have all the information they need, they will pass this on to the valuation team who will do a detailed valuation report, which include evidence to support the valuation of your flat.

Stage 2: Notice Serving and Negotiation

Next, the legal team will serve notice to your freeholder via a document called a ‘Section 42 Notice.’ Your freeholder then has two months to come back to us with a counter notice called a ‘Section 45 Notice.’ Usually, your freeholder takes the full time to come back and come back with higher price (we expect them to do this!)

The valuation team will then enter negotiations with your freeholder to drive down the price as low as they possibly can using a wide range of tactics based on the evidence they collected and analysed in the valuation report.

Unlike some firms, we don’t charge by the hour for negotiations. We effectively work until you are satisfied with the price you’d like to pay for the premium, regardless of how long this takes.

Stage 3: Conveyancing and Completion.

Alas, we have agreement! Once you and your freeholder have an agreement, LLS will start the final conveyancing work to complete your lease extension.

Your freeholder’s solicitor will provide a document which confirms the additional 90 years and reduces your ground rent to zero. The lease extension solicitors at LLS will then check this line-by-line to ensure your freeholder hasn’t added any charges or restrictions that will disadvantage you.

Once that’s done and the lease has been finalised, the legal team will register this at the Land Registry.

What do Homehold charge?

Homehold’s fees to look after your case from start to finish is £2,400+VAT. This includes all the valuation, negotiation and legal work – including any disbursements!

We charge this in three equal payments to make this easier to manage and paid at each stage of the process. This is three payments for £800+VAT.

Any work performed by our subsidiary firm of lease extension solicitors, LLS, is included in the overall price.

Why use Homehold for your lease extension?

Our surveyors and solicitors have done a number cases in Redbridge including areas such as South Woodford, Fairlop & Barkingside.

“Doing valuations in Redbridge are always exciting due to the range of different types of properties. I recently have moved close by to Redbridge – so understanding the different areas is slightly easier as well as having an amicable working relationship with the opposing valuers at the London Borough of Redbridge”

Mommin Miah, Valuer"

Hear it from another flat owner in Redbridge

We're delighted that we chose Homehold to handle our lease extension. Throughout the entire process the team have explained each step clearly, kept us well informed of progress and responded to questions quickly. Every step from the initial gathering of information, valuation, negotiation and the handover to LLS for the conveyancing aspects has been efficient and seamless.

Steve Spicer

Start your lease extension in Redbridge 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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