You are the freeholder or intermediate leaseholder of a block of flats and want to know if your tenant can extend their lease? The following is the criteria to establish whether they can obtain a statutory 90 year extension of their lease under the Leasehold Reform, Housing and Urban Development Act 1993:
Can my tenant extend their lease? The statutory criteria.
The original lease term must have exceeded 21 years and not be a business tenancy; and
The lessee must have owned the flat for more than two years before the date of a Claim to extend.
It is possible, where a flat is being sold, for the vendor to begin the lease extension process by serving Notice of Claim, and assigning the Benefit of the Notice to a purchaser.
Can my tenant extend their lease if they have more than one flat in a building?
There is no limit on the number of flats that a lessee can own in a particular building. They can extend the leases of any or all of them, provided the qualifying criteria is met.
Can beneficiaries of a deceased tenant extend a lease?
It is possible for the personal representative of a deceased tenant to make a claim, provided they do so within two years from the date of grant of probate.
If my tenant can extend their lease, what are they are entitled to acquire?
If a lessee satisfies the qualifying criteria, they are entitled to acquire a lease that is 90 years longer than the existing lease, at a peppercorn rent throughout the term of the new lease. The lease will be on the same terms as the existing lease, except for certain variations that are permitted.
For more information on how the premium is calculated see What premium will I receive?
Our services: We are able to advise you of the premium you are likely to receive from the extension of a lease or leases of flats in a block where you are either the freeholder or intermediate leaseholder. We are Chartered Surveyors with Registered Valuers, and are Regulated by RICS. We are also able to provide further information to answer Can my tenant extend their lease?
