Superior landlord lease extension
(Last Updated: 29/05/2024)
27/10/2021
41
5 min read
The Leasehold and Freehold Reform Act 2024 was passed on the 24th May 2024, but is not yet in effect and the date for this is not yet clear. We will update our content as and when the finalised legislation is published. Read more - Expected changes
Getting a lease extension when there is a head lease (aka intermediate lease) is more complicated because:
- 1
The head lease can't grant you a 90 year lease extension if their lease term is under the granted term; and
- 2
The lease extension premium is shared between the head lease and the superior freeholder.
What is different about a superior landlord lease extension?
The power to extend the lease can only remain with the head lease if they have enough years to allow the leaseholder to extend. If they don't then the superior freeholder is served with the Section 42 Notice and they will handle the formal lease extension process. What differs:
- the Section 42 Notice is served on the Competent Freeholder - IE the superior freeholder if the head lease does not have enough years.
- the Section 42 Notice states the premium due for the share to the head lease and the balance to the Superior lease.
Who is the Competent Landlord?
In legal terms, the competent landlord is the first landlord above the underlease who is capable of granting the 90 year extension. Often the competent landlord will be the flat owner’s immediate freeholder, but there are circumstances where they do not have sufficient years on their own head lease to grant the leaseholder the additional 90 years.
If it's found that the competent landlord is the freeholder and not the intermediate landlord then the freeholder would conduct the lease extension claim and the name used in the Section 42 Notice.
Separate prices would obviously need to be proposed in the notice of claim in respect of the effect of the extension on the freehold and headlease.
In fact an intermediate landlord can try to conduct things themselves if their ownership or the premium is in question by serving a notice of separate representation, however, the case of Stella Kateb vs.Howard de Walden Estates (2016) heard before the Court of Appeal tends to suggest that an intermediate leaseholder has limited powers in all these regards and might have to apply to County Court for remedy.
Free initial leasehold advice
Arrange a free consultation with one of our experienced conveyancing executives on:
- Lease extension.
- Purchasing the leasehold, freehold or share of freehold.
- Selling a leasehold property with a short lease.
- Extending the lease at the same time as you sell.
We specialise in lease extensions and have RICS valuers for the premium/negotiation and solicitors for the section 42 notice and formal or informal extension. Request a tailored quote for:
- RICS Lease Extension Valuation or L2 Homebuyers Survey.
- Serving of the section 42 notice or section 13 notice on the freeholder.
- Negotiation with the freeholder (with the support of your RICS valuer).
- Completion of the legal work, including deed of variation.
- Application to Tribunal to determine the premium.
- Vesting order for absent landlords.
Frequently Asked Questions
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Written by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Reviewed by:
Caragh Bailey
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
