Q&As

A freeholder is demanding £115K from a tenant to extend their lease. Other tenants in the block have extended at nil premium. What can the tenant do?

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Produced in partnership with Kate Andrews of Hamlins
Published on LexisPSL on 13/10/2017

The following Property Q&A Produced in partnership with Kate Andrews of Hamlins provides comprehensive and up to date legal information covering:

  • A freeholder is demanding £115K from a tenant to extend their lease. Other tenants in the block have extended at nil premium. What can the tenant do?

The fact that the landlord may have previously granted tenants in the same block lease extensions at a nil premium does not mean the landlord can be required to grant the tenant a lease extension at a nil premium.

However, assuming the tenant is entitled to claim a statutory lease extension (see below), there is a statutory mechanism for calculating the premium. The landlord cannot demand a premium of £115,000 if this is not the premium to which the landlord is entitled under the Leasehold Reform, Housing and Urban Development Act 199

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