Leasehold Property, Lease Extensions and Right to Manage Solicitors

Leasehold Property, Lease Extensions and Right to Manage Solicitors

Owners of leasehold properties have options to extend their existing leases, take over the management of the common parts (collectively with neighbours) and/or purchase the freehold either as individual house owner or as the owner of a flat collectively with neighbours.

If you are considering extending your lease, taking over the management or freehold of your leasehold property talk to Neves Solicitors in Milton Keynes. 

Options available to Leaseholders

Whilst the legislation empowers leaseholders in this way, it is complex and extremely detailed. In order to ensure that the process is effective you need to use a specialist solicitor with considerable experience of the procedures involved. The legislation has been developed to make it considerably easier for leaseholders to take these actions but as the consequences for the freeholder are so great the legislation requires accurate and precise notification and adherence to deadlines and timescales.

Under The Leasehold Reform Housing and Urban Development Act 1993 owners of leasehold properties have the ability to apply to extend their existing leases or collectively with other leaseholders of the building purchase the freehold of the building.

Under the provisions of the Commonhold and Leasehold Reform Act 2002 the leaseholders can take over the management of their building.

Lease Extension

Under The Leasehold Reform Housing and Urban Development Act 1993 qualifying leaseholders can apply to extend their lease by adding  90 years to the current unexpired term. A premium would be payable to the landlord for the extension. It would be prudent to consider making an application under the Act to extend a lease prior to a lease reducing to 80 years. This procedure is open to all leaseholders who meet the qualification criteria and would not require the cooperation of the other leaseholders in the building or estate.

Click on the link to download our brief guide to lease extensions - LEASE EXTENSIONS OF LEASEHOLD FLATS

Right to Enfranchise

The Leasehold Reform Housing and Urban Development Act 1993 provides the right for the leaseholders to join together to purchase the freehold of their building.

Subject to the application meeting the qualification criteria under the Act the Freeholder cannot object to the sale.

Once the leaseholders have purchased the freehold of the building they will then become responsible for managing the building. On purchase of the freehold of the building the tenants who have taken part in the purchase of the freehold often consider extending or varying their individual leases.

Right to Manage

The Commonhold and Leasehold Reform Act 2002 makes provision for leaseholders to take over the Landlord’s management functions and so to take responsibility for the day to day running of their building.

At least half of the leaseholders of the building will need to agree to take this action. The landlord's consent to the transfer of the management arrangements is not required and even where there is an absent Landlord the leaseholders are able to apply to be able to secure the management.

There is no need to prove any mismanagement by the landlord or the current managing agent to implement the right. As long as the leaseholders are qualifying leaseholders and satisfy the provisions of the Act the freeholder/managing agent cannot prevent the transfer of management powers to a Right to Manage company.

Neves Specialist Knowledge

Mandy Cowen has specialist knowledge in respect of all aspects of Lease extensions, Leasehold Enfranchisement and Right to Manage claims. Mandy acts for individual leaseholders, groups of leaseholders and freeholders in respect of the process. For more information on any of the above or the process generally, please call our Milton Keynes office on 01908 304560 email or complete our Contact Form and we'll get back to you.

Haneef and the team at Neves were excellent with my recent purchase. They were very thorough and really quick to respond to my emails. Professional throughout the whole process, especially in these current situations. The team is very responsive and great communication through different avenues. Haneef as my solicitor was very helpful and always replied to emails very quickly. I wouldn’t use any other solicitor. I highly recommend them.

14/12/2021 Mr Hussain
Haqib Iqbal
Partner - Commercial and Residential Property
Jane Joseph
Partner - Residential and Commercial Property
Trevor Kidd
Partner - Residential Property
Charlene Shillingford
Associate - Residential Property and Conveyancing
Dawn Goldie
Senior Conveyancing Executive
Mandy Cowen
Solicitor - Residential and Commercial Property
Haneef Khan
Chartered Legal Executive
Lucy Madley
Associate - Residential Property and Conveyancing
Kerry Shanley
Senior Conveyancing Executive