Kensington and Chelsea Lease Extensions

Life in Kensington and Chelsea:

Kensington and Chelsea, once separate boroughs, were originally Saxon settlements cited in the momentous Domesday Book of 1086. The affluent Royal Borough of Kensington and Chelsea was formed when the neighbouring areas merged in 1963.

The area was granted royal status in 1901, acting upon the wishes of Queen Victoria. It is currently one of only three boroughs in London to hold such a prestigious title.

From the sleek streets of South Kensington to the pastel pops of colour in Notting Hill, plenty of leasehold properties in the area may require a lease extension. Please browse this comprehensive location guide to learn more about Kensington lease extensions.

• Population: The population of Kensington and Chelsea, according to the latest census data, stands at 143,400 (ONS 2021).
• Average House Price: Kensington and Chelsea is known as the most expensive borough to live in London. Data from Rightmove reveals that over the past year, most property sales in the area involved flats selling for an average of £1,452,458.
• Districts in Kensington and Chelsea: Brompton, Chelsea, Earl’s Court, Holland Park, Ladbroke Grove, Kensington, North Kensington, Notting Hill, South Kensington, West Brompton, World’s End.
• Local Authority: The local authority is Kensington and Chelsea London Borough Council.

Lease Extension Regulations in Kensington and Chelsea

If you own a leasehold property in Kensington and Chelsea, you can extend your lease by an additional 90 years. This procedure can be carried out formally or informally.

Kensington and Chelsea London Borough Council is one of the main freeholders in the area, and their ‘New Tenancies and Leases’ webpage notes that they allow formal or informal lease extensions. However, we advise clients who have owned their property for at least two years to opt for the statutory (formal) route because it offers significant legal protection under the Leasehold Reform Housing and Urban Development Act 1993.

The council also urges leaseholders to seek independent legal advice. The Lease Extension Company will do just that. When you’re a client of The LEC, we will provide you with specialist surveyors and solicitors who will serve all necessary notices and negotiate your property’s cheapest premium with the fairest lease terms. If you’d like to see the results we’ve achieved for our previous clients, why not look at our case studies?

The Lease Extension Process

See below for a step-by-step summary of the statutory lease extension process.

• Eligibility Check
• Valuation
• Serving the Section 42 Notice
• Receipt of the Section 45 Counter Offer
• Negotiation
• Agreement of Terms
• Registration of your new lease

Please consult our ‘How Long Will My Lease Take?’ article for further information.

Serving the Section 42 Tenant’s Notice

Before your Section 42 notice is drafted, one of our specialist chartered surveyors will undertake the valuation of your property for the lease extension and identify the likely ‘premium’ (the price of your lease extension) you will pay your freeholder.

Identifying Your Competent Landlord

Our specialist solicitors will also identify the ‘competent landlord’ whose interest in the property is long enough to grant your 90-year lease extension.

Sometimes, this will be the direct landlord or housing management to whom you pay your service charge or ground rent. However, the competent landlord is usually the freeholder of the building.

The Leasehold Reform Housing and Urban Development Act 1993 requires leaseholders to serve a Tenant’s Notice (Section 42 notice) on the ‘competent landlord’.

The Section 42 notice commences the lease extension and must include specific legal information. This is a technical legal notice, and it must be correctly drafted and validated to ensure your lease extension is deemed valid.

At The Lease Extension Company, we work with specialist legal firms in this niche area of law, ensuring that your notice is drafted and reviewed by leading experts in this field. This document will be sent to you for approval before it is forwarded to the solicitors who will serve the Section 42 notice to the Freeholder on your behalf. Learn more about freeholders in Kensington and Chelsea in the following paragraph.

Key Freeholders in Kensington and Chelsea:

Kensington and Chelsea London Borough Council owns significant housing stock in the borough. Their ‘New Homes Delivery Programme’ also promises to add 600 new homes to their catalogue, furthering their presence in the area. In many cases, the council will be your freeholder.

Property developers such as Octavia, Peabody New Homes, and Legal and General Affordable Homes Ltd also offer several shared ownership opportunities in the area. In some cases, they might act as your competent landlord.

Please note that shared ownership leaseholders will only qualify for the statutory right to extend their lease if they have ‘staircased’ up to 100% ownership.

Finding Your Freeholder:

You will find the details of your freeholder in your original leasehold agreement. If you do not have a copy of your lease, you can request a duplicate from the HM Land Registry for a small fee, or as an LEC client; we can do this for you at the beginning of the process.

How Much Will Your Lease Extension Cost?

The cost of each lease extension procedure is different because it is based on the following individual factors:

• The value of your property.
• The amount of ground rent you pay and how much it increases over time.
• The number of years remaining on your lease.

The cost can also depend on your route to gain your lease extension.

• Informal Lease Extensions: Costs are determined and agreed upon directly with your freeholder.
• Statutory Lease Extensions: You are responsible for the valuation and legal costs of both you and your freeholder, plus the premium for the additional years on your lease.

Input your details into our Lease Extension Calculator tool to estimate your premium.

About Our Simple Fixed Fee Service

At The Lease Extension Company, we take a fuss-free approach to this complex area of property law.

We will develop a detailed plan covering all stages, legal requirements and your expected costs combined into one simple fixed fee so you know what to expect from the get-go.

You’ll also receive the guidance of an experienced surveyor and solicitor to ensure you’re not paying a penny more for your premium than necessary.

Extend Your Lease With The LEC Today.

Your lease extension will cost more if the lease term falls below 80 years. Act before this deadline by getting a quote or arranging a free consultation with The Lease Extension Company.

Complete our convenient online form, call us on 0800 098 2770 or email [email protected].