Lease extension – tax implication?
2 years ago | 8 comments
Extending a lease – Formal or informal approach?
12:01 AM, 3rd April 2025, 1 year ago
11
I am seeking to extend the lease on my flat (currently 91/92 years) by adding 90 years. Last year, I contacted the freeholder informally and negotiated a reasonable premium directly with him without involving any surveyors or solicitors.
I then pressed paused on going ahead with it as I was concerned about risks associated with the freeholder changing his mind, such as requesting changes or premium amount later down the line when I have incurred legal costs. I am happy with the premium but do not want to expose myself to the risks.
I would welcome the forum’s views and experiences on extending leases and how best to navigate this situation.
How concerned should I be if I take the informal approach and are there any other risks with the informal approach? Is there a hybrid approach where I adopt a formal approach but pre-agree a premium so surveyors are not involved?
Thanks,
Max
Tags:
extending lease, formal lease extension, informal lease extension, lease extension, lease premium, leasehold
11 comments on this article
Learn from your peers’ experience
A different perspective could help you spot an issue, avoid a mistake or find a better way forward. Read the comments and add your own views if you wish.
Related Articles
Labour pledges to end ‘feudal’ leasehold system with commonhold overhaul
2 years ago | 6 comments
Have we lost our right to buy the freehold?
2 years ago | 7 comments
Member Since February 2025 - Comments: 86
12:04 PM, 6th April 2025, About 1 year ago
You have to check your liability for completing a Land Transaction Return and paying SDLT, but at the moment it’s not required if the premium for the extension is less than £40,000 (and there’s no rent).