Individual Tenant’s right to a new lease

When 99 year leases are first granted the expiry of the leases seem more than a lifetime away. In fact leases begin to depreciate immediately. By the time there is 75 years unexpired, buyers’ solicitors will ask for lease extensions. At the point when tenants wish to sell they have no bargaining power with their landlord and they can effectively be held to ransom.

We have acted for numerous tenants in obtaining a lease extension by negotiation with the landlord. However, in some cases landlords are not prepared to negotiate and it will then be necessary for us to invoke the statutory procedure.

Under the Leasehold Reform Housing and Urban Development Act 1993, tenants who have owned their flat for two years have a right to extend the term by 90 years at a peppercorn ground rent (i.e. you will not have to pay any ground rent). Moreover if the current term is more than 80 years, no ‘marriage value’ is payable by the tenant.

Therefore if your lease currently has just over 80 years left to run, it is important that you act promptly.

Prudent tenants therefore should always look ahead and exercise their statutory right to extend if they cannot acquire the freehold collectively with other tenants. We have considerable experience in this field.

We also have extensive experience in drafting new leases or lease extensions where the tenants have acquired their freehold and wish to improve the terms of their leases.

If you would like to find out more about lease extensions click here.

Our specialist Long Leasehold team, headed by Dan Ongley, will be happy to advise on the lease extension procedure.

To find out more please contact Dan Ongley on 01273 384015 or by e-mail, alternatively you may use our online enquiry form