Format of extended leases

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    Format of extended leases

    Hi all

    If an old lease is being extended on a statutory basis - how is it done in terms of the format of the document? Old leases often are not in Word or pdf, but some kind of scanned image. Do solicitors normally type it and make a Word/pdf and add the new length? Or does the document stay the same but an extra page is added?

    I am asking because I am going though an informal lease extension, and the agreement I have with the freeholder is that only the lease duration and rent are to be altered, the rest should stay exactly the same. But the freeholder's solicitor said that the lease is very old, so instead they have sent a completely different lease (with lots of extra obligations). Would it not be easier and quicker to retype the existing lease rather than have to go through the interpretation of the new lease and trying to remove the bits we do not like?
    I just wonder if there is some new regulation that leases need to be in Word format so the freeholder's solicitors thought it is easier for them to use one of their existing pro-formas?


    #2
    There are details that need to be included in the lease extension (Land Registry numbers: LR1-LR14). The document will then go on to clarify 'parties, definitions, interpretation etc.' and the changes i.e. extending the term, changing the rent and will then refer to all of the original terms of the existing lease as though they were reproduced in full in the new lease.

    When we negotiated a lease extension (as an aside, we did not proceed in the end though might in the future) we also requested a photo copy of an original copy of the existing lease from the Land Registry was included as an Appendix.

    So in short, your new lease will be a new Word document with a copy of the existing lease. There is no need for the existing lease to be retyped for the new document.

    Finally, be careful about new terms/obligations. I am not suggesting it is the case but sometimes freeholders use lease extensions to surreptitiously include new terms.

    Comment


      #3
      Thank you so much - very helpful!

      Comment


        #4
        It is dealt with by way of. deed of surrender and regrant and should have attached to this deed a copy of the lease that is being extended

        Comment


          #5
          Is your lease extension the "statutory 90 years extension" at peppercorn ground rent.? You should not allow extra onerous terms to be added, such as ground rent doubling after every 10 years or 15 years .

          Comment


            #6
            You are entitled to a new lease (at a peppercorn rent) on the same terms as the existing lease.as provided by section 57 of the Leasehold Reform, Housing and Urban Development Act 1993.

            The lease must, whatever the format, contain the details required by the Land Registry. Otherwise it can either set out the terms in full or incorporate the terms of the existing lease by reference.


            Comment


              #7
              it is indeed a try on, the deed of lease extension should alter simply the term, the rent, and will usually include a modern registration fee, Other than the statutory recitals that's about it. Some solicitors like to append the principal lease, and its not a bad idea but its not essential by any stretch. If HMLR have the original lease available as a document they will not discard it on a new lease being registered to enlarge (extend) the term

              Comment


                #8
                L4NDLORD,

                I take your point but having the original lease and any deed altering the lease attached to the deed of surrender and regrant means that anyone reviewing the lease will download all they need in one download making it easier, quicker and cheaper to get the information thery need

                Comment


                  #9
                  Originally posted by aurora1 View Post

                  I am asking because I am going though an informal lease extension, and the agreement I have with the freeholder is that only the lease duration and rent are to be altered, the rest should stay exactly the same. But the freeholder's solicitor said that the lease is very old, so instead they have sent a completely different lease (with lots of extra obligations). Would it not be easier and quicker to retype the existing lease rather than have to go through the interpretation of the new lease and trying to remove the bits we do not like?
                  For me, this part is already a red flag!! Do not fall for the trap in agreeing for new terms to be inserted in the new lease that are not part of ur existing lease (irrespective of the format).

                  this is the danger of doing a lease extension informally instead of following the formal route.

                  Was there a reason why u decided to go informally instead of following the statutory route?

                  Comment


                    #10
                    Originally posted by Babyspice View Post
                    this is the danger of doing a lease extension informally instead of following the formal route.
                    I do not think that following the formal route will stop landlords or their solicitors insisting that the lease needs to be updated.

                    Comment


                      #11
                      Originally posted by Lawcruncher View Post

                      I do not think that following the formal route will stop landlords or their solicitors insisting that the lease needs to be updated.
                      It depends on what they are trying to update/add. On the statutory route I do not think that they will be able to add new/amend covenants.

                      If they try at least u can take the matter to FTT for ruling. On the informal route, u won’t be able to (u r not protected by law).

                      it all depends on what the FH is trying to do, as for sure he will only be looking at his own interest.

                      Comment


                        #12
                        Originally posted by aurora1 View Post
                        I am going though an informal lease extension, and the agreement I have with the freeholder is that only the lease duration and rent are to be altered, the rest should stay exactly the same. But the freeholder's solicitor said that the lease is very old, so instead they have sent a completely different lease (with lots of extra obligations).
                        DO NOT AGREE for ur current lease to be altered in any way!!!! If they insist in going down this route, get ur solicitor to trigger S42. This will solve the pb. Also, in ur situation, I would not agree to retain GR. I would porsue peppercorn GR which the statutory route will give u. At the moment GR is a hot topic. In the forum I am part of, i hear frequently sales falling through due to onerous GR. remember lenders look at the GR in the entirety of the term, not what the GR is at the point of sale. Therefore, be very wary before agreeing to anything. Ur solicitor should be looking at ur best interests and advising u on this. If he is not, sack him and get an ALEP solicitor to represent u properly. U have been warned!!!

                        Comment

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