Lease extension s61 rights?
My Wife owns a small rented flat. Terms agreed with Freeholder for lease extension under the Leasehold Reform Act 1993. The act gives statutory powers to the Freeholder to obtain possession for redevelopment with compensation under s61.
The Freeholder’s solicitor insists on a new clause that gives a Leasehold Reform Act 1993 and pay compensation.
We argue this is ambiguous and contrary to the statutory code.
They say it’s a standard clause, but provide no legal basis for the amendment. No redevelopment rights exist in the current lease, these rights originate entirely from the Act.
We are willing to accept a clause which states that the rights arises solely from the Act, but their draft could be argued create separate contractual rights which are less favourable than the statutory code.
Leasehold Reform, Housing and Urban Development Act 1993 UK Public General Acts1993 c. 28Part IChapter IILandlord’s right to terminate…Section 61 >> https://www.legislation.gov.uk/ukpga/1993/28/section/61
Leslie
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Member Since January 2015 - Comments: 1435 - Articles: 1
11:11 AM, 23rd April 2025, About 12 months ago
What is the current Lease term?
How many flats in the building?
Has anyone else extended their Lease recently and were they submitted to unreasonable pressure to accept the “if you don’t agree then we wont extend the Lease”?
Is the Freeholder thinking of redeveloping the site?
Member Since October 2020 - Comments: 1144
11:22 AM, 23rd April 2025, About 12 months ago
I suggest you get a second opinion. The Leasehold Advisory Service is a good option.
Member Since January 2023 - Comments: 143
10:45 AM, 25th April 2025, About 12 months ago
The landlord is entitled to the right to buy back the property at what then would be a fair value at the terms date of the existing lease and in any of the five last years of the lease as extended. It is completely normal
Member Since July 2013 - Comments: 754
11:16 AM, 25th April 2025, About 12 months ago
If you are negotiating a lease extension on the statutory basis (ie formal notices sent/received), the only changes the LL can require are rent and ‘modernisation’ of terms. I am doubtful that what is being suggested comes into that category. If you haven’t already done so and you want to challenge the proposed terms, you can contact ALEP who can point you to appropriate surveyors/valuers and solicitor practitioners in your area who specialise in this area of law and valuation, and they can argue your case .