Surrender of existing lease and regrant new lease

Jatinder34

ahfat41 said:

There is a clause that existing lease must be surrendered and new one granted.  My understanding is when the lease reaches below 90 it is time to think about extending.  According to this lease it must be surrendered and a new one granted.  This means if there is 80 yrs remaining on the lease I will lose it and get a new one for 125 yrs.  I thought it would be 80 yrs + 125 yrs.  Rising ground rent starts at £200 and rising up to £1600 during the 125 yrs term.  Flat in London.  Is the common?  Thanks

In this situation there are two general methods to extend the lease: Statutory lease extension and Informal lease extension

1. If you have a statutory lease extension under the Leasehold Reform, Housing and Urban Development Act 1993, it will be extended by 90 years.

2. The other lease extension option is to by negotiation with your freeholder and would not be covered by the Act (This is known informal process or non - statutory process). You may be confused in choosing the one, for this you should consult a Leasehold Valuation expert to get your lease extension process done with ease.