New website
We're currently redeveloping our website so you may see a mix of old and new style pages while we complete this work. We'd love to hear your feedback on the new style.
Lease extension policy (Right to Buy)
-
Introduction
1.1 This policy applies only to those residential leasehold properties purchased under the Right to Buy.
2. Who has the right to extend their lease?
2.1 Leaseholders have a statutory right to extend their lease if they meet the relevant requirements.
2.2 The legislation which allows long leaseholders to purchase an extension to their lease is the Leasehold Reform Housing & Urban Development Act 1993. Section 42. Norwich City Council will only extend leases under this act and will not enter into informal negotiations.
2.3 The extension we grant will be for 90 years.
3. What criteria do I need to meet to extend my lease?
3.1 To be able to extend your lease you must own a lease granted under “Right to Buy”.
In addition, you must have owned the lease of your property for more than two years.
4. What are the costs to extend my lease?
4.1 The price you will pay (the “premium”) for your lease extension is based on a formula set out in the Leasehold Reform Housing and Urban Development Act 1993 (the 1993 act), as amended by any future acts that apply.
This must be calculated by a Royal Institution of Chartered Surveyors (RICS) Qualified Surveyor. A valuation upon which the premium will be calculated, will be provided by the council but you are welcome to provide your own valuation for consideration.
4.2 You will also be responsible for paying:
- Your valuation fees (if you do not agree with the valuation provided by the council)
- Our administration charges
- Our legal costs
- Your solicitor’s costs
5. How do I extend my lease?
5.1 Before we agree to extend the lease, you’ll need to resolve all breaches to your lease, for example:
- Clear any outstanding arrears or debts you owe us
- Resolve any outstanding anti-social behaviour issues
- Remedy any serious repairs you’re responsible for.
5.2 To extend your lease, you need to send us:
- A completed Section 42 Leasehold Extension Notice, also known as a Tenants Notice.
- The council cannot assist you with this process. Your solicitor will do this for you. We recommend that you instruct a professional to help you draft the notice as any inaccuracies may result in the notice being deemed invalid, and you will be liable for both your own and the councils’ costs.
- A copy of your valuation (if applicable)
5.3 We will send you an acknowledgement on receipt of your Notice, after completing some initial eligibility checks.
5.4 Under legislation we have at least two months to respond. This is called a “Counter Notice” which will either accept your offer or state the price we think you should pay.
5.5 If we refuse your request, we’ll explain why and signpost you to advice about what you can do.
5.6 If your valuation is inconsistent with our understanding of the value, we’ll attempt to agree a premium with you. If we’re unable to agree a premium, the matter may be referred to the Leasehold Valuation Tribunal for determination.
5.7 If we approve your request, our solicitor will prepare the Lease Extension deed and liaise with your solicitor to complete the lease extension.
5.8 Prior to completion you must have paid all outstanding services charges and costs relating to your leasehold property.
6. What you can do if you’re not happy with our decision
6.1 If you’re not happy with how we handled your request, our decision, or feel we have not followed this Policy, you can ask for a senior manager in the Home Ownership Team to review the case.
6.2 If we refuse to extend your lease, you’ll need to get independent legal advice about your options.
7. Review
7.1 We will review this Policy to address legislative, regulatory, best practice or operational issues, otherwise every 3 years.
Published: 5 May 2024
Next review date: May 2027
