I own a leasehold flat with only 68 years remaining. I have been told that this is very short and that I should extend the lease. How am I able to do this?

by The Chartered Surveyor

Question

I own a leasehold flat. The lease was originally 99 years, but there are now only 68 years remaining. I have been told that this is very short and that I should extend the lease. How am I able to do this?

Answer

The Leasehold Reform, Housing and Urban Development Act 1993 gave the owners of leasehold flats the right to claim a new lease from the freeholder (landlord) of the property.  Although we talk about extending leases what actually happens is that freeholder grants a new lease. The new lease will be for a term 90 years longer than the unexpired term of the original lease. The new lease will be at a ‘peppercorn rent’ (i.e. no rent) but will otherwise be on the same terms as the original lease. In order to claim a new lease the lessee has to serve a formal notice on the freeholder in accordance with Section 42 of the Leasehold Reform Act.

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