Q&As

Would service charge not reserved as rent count as rent for enlargement purposes? And does a premium constitute rent and prevent a term from being enlarged?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 21/09/2018

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • Would service charge not reserved as rent count as rent for enlargement purposes? And does a premium constitute rent and prevent a term from being enlarged?
  • Would a service charge not reserved as rent count as rent for enlargement purposes?
  • Does a premium constitute rent?

Would a service charge not reserved as rent count as rent for enlargement purposes?

Enlargement is a process governed by section 153 of the Law of Property Act 1925 (LPA 1925) which enables a tenant unilaterally to obtain a freehold estate out of their leasehold term of years. The leaseholder does this by execution of a deed declaring the enlargement which, once registered with HM Land Registry, has the effect of ousting the freeholder in respect of the demise. Only certain leases can be enlarged. It is necessary for the initial term of the lease to have been at least 300 years with at least 200 years outstanding. The rent payable under the lease must be no more than a peppercorn or, if substantive rent is due under the lease it must have been released or its recovery barred

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