Portal

How do I extend my lease?

A guide to extending your lease

Most housing association leases were historically granted for either 99 or 125 years and when a property is sold, a new lease is not created. The lease is assigned to the new owner.

The number of years your lease is granted will be set out in the lease particulars and on the land registry title documents. The value of the property can reduce when there are fewer than around 80 years left on the lease. This can make it difficult to re-mortgage or sell your home.

However, if you own 100% of your property then you have a statutory right to extend your lease, provided you meet the eligibility criteria detailed below.  For a flat this is plus 90 years and a house +50 years added to the remaining term of your lease.

Shared ownership customers – you do not have a statutory right to extend your lease but we have a Voluntary policy in place to allow you to do so. You would receive plus 90 years on the remaining term of your lease.

Check your eligibility

In order to be eligible for a lease extension you must be the long-leaseholder and hold a lease with the following:

  • a term of 21 years or more
  • granted under the Social HomeBuy Scheme with 100% ownership
  • granted under the Right to Buy or Right to Acquire
  • a 100% leaseholder must have held their lease for at least two years.

The route to take - 100% Owners

100% owners should follow the Statutory Lease Extension route in accordance with the procedure laid down in the Leasehold Reform, Housing & Urban Development Act 1993.

You will need to serve Formal Notice in accordance with the Act
Please note your solicitor should check in the first instance to confirm that we are the Freeholder/Competent Landlord before serving the Notice.

The route to take - Shared Owners

  • Shared Owners are only able to extend their lease informally as you do not qualify for a new lease as defined in the Leasehold Reform, Housing & Urban Development Act 1993.
  • The offer to extend your lease is subject to our lease extension process where all decisions to extend your lease are at our discretion. For all lease extensions, your current lease will be surrendered, and we would grant you a new lease for the extended term.
  • For formal applications, it is likely that your lease will be extended for 90 years on top of the current term. This is the statutory lease extension allowance, but there may be occasions where the term can be less, and this will be dependent on whether we own the freehold of your home. This will be determined as part of the process.
  • For informal applications received after 1 September 2021, we will extend your lease where possible to a new 990 year term. This will be dependent on whether we are the freeholder of your home.
  • Where we are not the freeholder, will we offer you the maximum term that we can; however this will be within the limitations of our own Head Lease. We will confirm the term that can be provided, as part of our process.
  • Where you have an option to staircase out (buy further shares) to 100% ownership then where your property is Freehold the Freehold would automatically pass to yourself avoiding the need to extend your lease.
  • If your lease term is low (less than 80 years as required by a Lender) and you are selling and this is impeding your sale you can also agree to simultaneously extend your Lease to run in conjunction with your sale.

It is really important for you to consider the costs involved before deciding to extend your lease. We make a charge to cover the cost of providing a service to you.

How long does it take?

A voluntary lease extension should take no more than three months.

A Statutory lease extension follows strict timescales given through The Act

To find out more or to apply, please contact us by email at salesservices@plumlife.co.uk

You can also visit the Lease Advice website for impartial advice and speak with a legal representative about your options.