Q&As

Where a flat lease extension claim is suspended due to the commencement of a collective enfranchisement claim, and the collective enfranchisement claim is successful resulting in the sale of the freehold reversion to the flat lease, is the tenant under the lease extension claim still liable for costs incurred by the original landlord in connection with the lease extension claim? If the tenant is liable for the original landlord’s costs incurred in connection with the lease extension claim, when do those costs become payable?

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Produced in partnership with Martin Codd of Penningtons Manches Cooper
Published on LexisPSL on 11/11/2019

The following Property Disputes Q&A produced in partnership with Martin Codd of Penningtons Manches Cooper provides comprehensive and up to date legal information covering:

  • Where a flat lease extension claim is suspended due to the commencement of a collective enfranchisement claim, and the collective enfranchisement claim is successful resulting in the sale of the freehold reversion to the flat lease, is the tenant under the lease extension claim still liable for costs incurred by the original landlord in connection with the lease extension claim? If the tenant is liable for the original landlord’s costs incurred in connection with the lease extension claim, when do those costs become payable?

Where a flat lease extension claim is suspended due to the commencement of a collective enfranchisement claim, and the collective enfranchisement claim is successful resulting in the sale of the freehold reversion to the flat lease, is the tenant under the lease extension claim still liable for costs incurred by the original landlord in connection with the lease extension claim? If the tenant is liable for the original landlord’s costs incurred in connection with the lease extension claim, when do those costs become payable?

Under the section 60 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993), the tenant who has brought a claim for a lease extension under LRHUDA 1993, s 42 is liable to pay the landlord’s reasonable costs of and incidental to any of the matters which are set out in LRHUDA 1993, s 60(1), namely:

‘(a) any investigation reasonably undertaken of the tenant’s right to a new lease;

(b) any valuation of the tenant’s flat obtained for the purpose of fixing the premium or any other amount payable by virtue of Schedule 13 in connection with the grant of a new lease under section 56;

(c) the grant of a new lease under that section’

These are the reasonable costs which are incurred by a ‘relevant person’ and under LRHUDA 1993, s 60(6) a ‘relevant person’ is defined as

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