People Insights
Services
Contact Us
Get in touch
Contact Us
Published On: April 23, 2019 | Blog | 0 comments

I Have A House With A Lease – Can I Extend It?


In most circumstances having a Lease means you own a leasehold flat and owning a house means you have a freehold but this is not always the case. In some rare cases you can find leasehold houses and so you may want to extend the Lease like you would a leasehold flat.

With a leasehold flat you have a statutory right to extend under the Leasehold Reform, Housing and Urban Development Act 1993 as long as you meet the qualifying criteria. However, with a leasehold house the statutory right can be found under the Leasehold Reform Act 1967.

The rights under the 67 Act are not the same as those under the 93 Act. Under the 67 Act you can extend the Lease by an additional 50 years from the expiry of the original Lease.

Under Section 14 of the 67 Act will only apply if certain qualifying conditions are met:

• The property must be a house;
• The property must be on a long lease;
• The tenant must have held the lease for at least 2 years

There are two questions to be answered:

1. Is the building one “designed or adapted for living in?” and
2. Is it a “house reasonably so called”?

The Court of Appeal confirmed that the correct approach is whether it is reasonable to call the property a house not whether it is possible to call it a house.

The tenant must have held a lease of the house under a long tenancy for the last 2 years. It is not necessary to live in the house to have 67 Act rights.

Under section 1 of the 1967 Act there is a maximum rateable value for extensions. For tenancies entered into before 1 April 1990 the test depends on the rateable value of the premises on the “appropriate days” which are 23 March 1965 and 1 April 1973.

LRA 1967 rights are not available in respect of certain leases, including:

• Business leases
• Agricultural holdings
• Charitable housing trusts.

The terms of the new Lease will be the same as those of the existing lease, save that any provision for renewal or purchase of the reversion and any break clause are to be excluded (as per section 15).

The new rent under the extended lease is to be a ground rent representing the letting value of the site only. After the new rent has been paid for 25 years, the landlord may require a revised rent to be paid representing the letting value of the site at that time.

The tenant is required to pay the landlord’s costs in respect of:

• Investigating the tenant’s right to an extended lease;
• Drawing up the new lease; and
• Valuation leading to assessment of a new rent, provided that it is obtained before the new lease is granted.

*Disclaimer: The information on the Anthony Gold website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied.*

Get in touch

Call, email or use a contact form – whichever suits you. We’ll let you know the best person to help you get started.

Call or Email

020 7940 4060

mail@anthonygold.co.uk

No comments

Add your comment

We need your name and email address to make sure you’re a real person. We won’t share your email address with anyone else or send you spam. Please complete fields marked with *.

Leave a Reply

Your email address and phone number will not be published on the website. Other visitors will not be able to see your contact information. Required fields are marked *

Contact Us

How can we help?

Request a Call Back

How can we help?