Will my new lease be on the same terms as my original lease?

by The Chartered Surveyor

Question

I am applying for a new lease on my flat under the terms of The Leasehold Reform, Housing and Urban Development Act 1993.  Will the new lease be on the same terms as my original lease?

Answer

The new lease will generally be on the same terms as the original lease with two obvious exceptions:-

  • The new lease will be at a ‘peppercorn’ rent (effectively no rent)
  • The new lease will be for a term expiring 90 years after the term date of the original lease.

Whilst the landlord and tenant are free to agree the terms of the new lease under Section 57(6) of The Leasehold Reform, Housing and Urban Development Act 1993 neither party can dictate the terms to the other and, in the absence of agreement, changes that can be made are very limited and are covered in Sub-Sections (1) to (5) of Section 57.

The change that may most commonly occur is often in relation to older leases where in the original lease the landlord is unable to recover the cost of complying with any obligation for the provision of services or for repairs, maintenance and insurance.