Q&As

A headtenant company is dissolved and the head lease is bona vacantia. Does the undertenant lose its right to claim enfranchisement under the Leasehold Reform Act 1967 if the headlease is forfeited or disclaimed? It is appreciated that the undertenant will retain rights to relief from forfeiture/a right to apply for a vesting order.

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Published on LexisPSL on 23/08/2018

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • A headtenant company is dissolved and the head lease is bona vacantia. Does the undertenant lose its right to claim enfranchisement under the Leasehold Reform Act 1967 if the headlease is forfeited or disclaimed? It is appreciated that the undertenant will retain rights to relief from forfeiture/a right to apply for a vesting order.

Where a headtenant company has been dissolved and the lease vests in the Crown as Bona Vacantia, the Crown will usually take steps to disclaim the lease if it considers the interest to be ‘onerous’, which will include where the land in question is of limited value or where it would not be cost effective to dispose of the property. The Crown does not have any right to forfeit.

The effect of a disclaimer will be to bring the rights and liabilities of the head tenant to an end under the headlease. Any sub-lease will no longer exist, although the sub-tenant’s interest in the property will be preserved. The sub-tenant is said to have a collection of rights which are capable of being assigned and which are good title and it can

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