Lease Extension when Owning the Freehold Block of 6 flats?

Was the Management Company set up by the developer and is a party to your Leases a Residents (not residential) Management company (RMC)or set up by leaseholders and is a Right to Manage Company (RTM).

The RMC holds the freehold interest and leaseholders in their separate role as shareholders/members with voting rights under RMC articles and Co Act 2006, respond by a vote to extend their leases, the Resolution is minuted and put into the hands of an experienced solicitor.

An RTM does not hold the freehold interest.

The question of legal fees are probably not allowable cost to service charge in your leases but should be checked. It is therefore is an extra charge which must also be agreed and paid by leaseholders in their roles as members not as lessees.

You should be able to get a solicitor or conveyancer to draft a template Deed of Variation, if none of the joint freeholders can or have conveyancing/legal experience.

Leasehold Advisory Service may well have a template or can advise.

Then use this template for ALL the flats (correct Part (1) and (2) and The Lessee or The Lessees (depending if only 1 or more Leaseholder per Title needs to be correctly inserted). Registration at HMLR is about £40 ish (last one I did 2022) and have registered with the Titles for each flat AND for each one also a certified copy with the Freehold Title. Sensible to do an additional executed copy of each flat’s to keep with the Management files as well as a photocopy.

Rent 999 years and Ground Rent a Peppercorn

I’ve been through this process – virtually identical set up to your position except with more flats involved. Hire a legal rep with experience in leasehold. Process is straightforward, minimal cost and well worth it from an investment stand point.

Pretty straightforward, but you will need legal support. Speak to Jade Thomas at Lease Law Limited, who specialises in matters such as these.

I’m a property lawyer who has done this for a resident freehold company. The extension of the lease term operates to surrender and regrant the leases, even if done as a “Deed of Variation”. If the flats are mortgaged, the surrender and regrants can’t be registered without the mortgagees getting involved and new mortgages. So instead I drew up a deed of option for each flat owner to call for the extension when they are in the process of selling or remortgaging, and the deed also agreed that the existing leases would be reworded (there’s usually sense in checking the wording and bringing it in line with current thinking) to match the new long leases in the meantime. The options are registered against the freehold title. Some of the flat owners have managed to remortgage because they’ve got the benefit of the option, without actually having to exercise it.

Reply to the comment left by Kate Gould at 12/02/2025 – 13:26
Katie Gould

You talk of rewording the leases when creating Deed of Option for lease extension

Is that possible where the Lessor is the Superior Lease as an Interest in the incorporated RMC a party to the under leases each title registered with Absolute Possession and also registered on SL Charges Register, the SL itself an Under lease.

Reply to the comment left by Kizzie at 12/02/2025 – 13:46
Sorry Kizzie, I’m not clear what you’re describing. If the leases you’re wanting to amend are subleases, then it depends on what the head lease says as to whether the freeholder (or a superior landlord with another, superior lease) has to agree as well. Titles are either Absolute, Good Leasehold or Possessory, never Absolute Possession.

Reply to the comment left by Kate Gould at 12/02/2025 – 13:26
[email protected] is my contact e-mail for work like this, as it falls under regulated legal services.