Since the Leasehold Reform, Housing and Urban Development Act 1993 came
into being a tenant (lessee) of a flat on a long lease has been able to purchase a lease
extension from their landlord (lessor) as of right. The extension would add 90
years to the end of the existing lease at a peppercorn ground rent. This is an
attractive prospect if the lease is shorter than 70 years and a sale is being frustrated.
The Commonhold and Leasehold Reform Act 2002 relaxed the qualifying rules.
This is a right under statute but quite often tenants prefer to negotiate
with their landlord's rather than apply to a First-tier Tribunal (the old Leasehold
Valuation Tribunal) for the statutory extension. The Tribunal is informal and will
take into account all the relevant issues. Quite often the hearing will be held
locally and you can get someone to represent you if you want.
It is also possible for tenants of long leases to club together and buy
their freehold but not everyone need to join in. Quite often this seems like a good
idea but there are many pitfalls and responsibilities for the new [joint] owner.
Before embarking on this sort of project always get proper advice.
