13:55 PM, 14th September 2016, About 6 years ago 4
I am about to sign a new lease extension that has been agreed by my solicitor. However there is a final clause that I am worried about, and which my solicitor has stated in his report that I should not be concerned about as it is so far off and will not affect a lender or buyer.
The lease extension is under the Leasehold Reform Act 1993 S56 for additional 90 years at peppercorn rent. Clause added by freeholders solicitor is :
5.1 the landlord may at any time during period
5.1.1 12 months ended 31.3.2096
5.1.2. 5 years ending 31.3.2186
Apply to the Court under S61 of the Act for an order of possession on the grounds that it intends to demolish or carry out substantial works on the whole or part of the property. Provision of that Section and of Schedule 14 of the Act to pay compensation to the tenant.
I know this is a long way off, but surely it a will make the property unsaleable at those times and even affect a sale now. Anyone come across this clause added to a lease extension? The landlords S45 notice had the clause regarding redevelopment under S47(1) deleted.
I’d be grateful for any advice before I sign.
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