What is a lease extension? Leasehold property


Leasehold property is property - usually a flat – held under lease for a fixed term without owning the land on which the property stands.


It’s an ownership structure used when there are several self-contained residences inside one building.


Leases are typically granted for 99 or 125-year lease terms.


What is a lease extension?


The Leasehold Reform, Housing and Urban Development Act 1993 gives the leaseholder – also known as the tenant or lessee – the right to extend their lease by a further 90 years, without payment of any further ground rent.


The freeholder (often referred to as the landlord) is legally obligated to comply with this request, depending on three criteria:


1. The property must be a flat


2. The leaseholder has owned their flat for at least 2 years


3. The lease has an original term of at least 21 years


2.


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