The right to an extended lease—flats
The right to an extended lease—flats

The following Property guidance note provides comprehensive and up to date legal information covering:

  • The right to an extended lease—flats
  • Premium payable
  • Qualifying criteria
  • What is a long lease?
  • Terms of the new lease
  • Leases which cannot be extended
  • Landlord’s opposition
  • Contracting-out
  • Protection by registration

A tenant who holds a long lease of a flat has a statutory right (subject to compliance with statutory qualifying criteria) to a 90–year extension of the lease, for which the tenant must pay a premium. The tenant may exercise the right even though the flat forms only part of the premises demised by the existing lease; consequently the headlessee of a block of flats is prima facie entitled to claim an extension of the headlease, even though the demise includes multiple flats, as well as common parts. However, the tenant cannot exercise the right where any additional premises have no natural or physical connection with their flat.

Although the right is expressed as the tenant being granted an extended lease, the actual method for giving effect to this right is for the tenant to be granted a new lease, in substitution for the existing lease, for a term equal to the unexpired residue of the existing lease plus 90 years.

The right to an extended lease may be exercised repeatedly. It can be exercised whether or not the premises containing the flat have been the subject of collective enfranchisement, but where an application for collective enfranchisement is pending, any application by an individual tenant for an extended lease is suspended pending the outcome of the collective enfranchisement application.

The right to