Individual leaseholders of a lease originally granted for 21 years or more have a right to extend the lease for 90 years and reduce the ground rent by paying a sum to the freeholder.
Leaseholders often extend the lease while it still has 80 years or more to run, as the price payable for a lease extension increases when there are less than 80 years left to run on the lease.
Qualifying tenants of leasehold property may be able to purchase the freehold title to their properties through a process known as collective enfranchisement. The landlord or freehold owner can only prevent this from happening in very limited circumstances.
Sale of Freehold and Tenant’s Right of First Refusal
Where a freeholder wishes to sell the freehold of a block of flats they must serve notice of their intention to do so on the tenants and give the tenants a right of first refusal. This means that the tenants have the opportunity to form a company and buy the freehold themselves.
Whether you are a landlord or leaseholder, at Richard Griffiths & Co our experts can guide you through the process, explaining your rights and obligations and ensuring the appropriate notices are served in good time.