Can a limited company who is the long lessee of a flat be a qualifying tenant & exercise the right to extend the lease under the LRHUDA 1993?

The answer?



The Leasehold Reform, Housing and Urban Development Act 1993, Chapter II (LRHUDA 1993) governs the procedure for exercising the right to acquire a new lease. Section 39(3) defines what a qualifying tenant is by reference to section 5 (excluding ss (5) and (6)) and section 7.

Section 5 of LRHUDA 1993 was amended by the Commonhold and Leasehold Reform Act 2002, s 117 (1), Sch 14. Before 26 July 2002 in relation to England and 1 January 2003 in relation to Wales, a qualifying tenant also had to satisfy a residence condition, ie he must have occupied the flat as his only or principal home for the previous 12 months or for periods amounting to three years in the previous ten years, whether or not he had used the flat for other purposes: see s 6 (repealed). Thus a qualifying tenant had to be an individual and not a company; the repeal of s 6 has removed that restriction.

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Here’s another question for you…

How can you structure the ownership of a mixed use development to minimize the risks posed to the freeholder/developer by the exercise of key statutory by long leaseholders?

Find the answer (and more) in this free practice note…!

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When a proposed mixed use development includes a residential element, a degree of caution should be exercised. A number of potential risks/issues arise. A number of these can, however, be avoided/reduced by careful ownership structuring at the outset.


This note details the most common pitfalls and risks and sets out (including detailed diagrams) the best structures to minimize risk and safeguard viability in the most common scenarios. CLICK HERE FOR YOUR FREE DOWNLOAD!

Keywords: mixed use developments; right to manage; right to buy; right to extended lease; service charge issues; ownership structures.

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