It is possible for the seller, if they have owned the lease for at least 2 years, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer will not have to wait 2 years to extend their lease. There is no prescribed form for the assignment but it needs to be clear that the purpose of the notice is to assign the benefit of the Section 42. This has to be done before, or at the same time, as the lease is legally assigned.
Alternatively it may be possible to extend the lease informally by agreement with the landlord either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the buyer.
Lease extension can be a difficult process. We recommend you get professional help from a solicitor and surveyor with experience in this area.
More information you might find useful:
- Lease Extension – Getting Started: Assessing the Premium Payable
- More Frequently Asked Questions on Purchase/Sale
- Lease Extension Calculator
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