Blandy & Blandy LLP Solicitors

"Their overall level of service is excellent."

Chambers UK

Commercial Property Solicitors

Lease Extensions and Collective Enfranchisement

Our experienced team of specialist Commercial Property solicitors, based in Reading and Henley-on-Thames, can advise you in relation to lease extensions and collective enfranchisement, including on those areas below.

Obtaining a new lease

A long lease of residential accommodation can become difficult to sell and difficult to mortgage if the unexpired residue of the term falls below a certain number of years. It is a deteriorating asset and should be extended periodically to maintain its value. The longer it is allowed to depreciate, the more expensive it becomes to effectively buy back the property.

There are different regimes for flats and houses and the rules differ slightly. Although often self-evident, there can be unusual situations for certain types of building where it may not be immediately clear whether the property is a house or a flat. It requires careful analysis, a review of the lease and potentially an inspection of the property.

Qualifying tenants of a house

A qualifying tenant of a house under a long lease who has held the lease for at least 2 years may have the right to either acquire the freehold or to obtain a new lease. A qualifying tenant of a house normally asserts the right to buy the freehold in return for a premium. The tenant may also have the statutory right to a new lease for the original term plus an additional 50 years at a modern ground rent but with no premium payable. This right is not often exercised in practice as the right to buy the freehold is generally considered the more attractive option.

Qualifying tenants of flats

Qualifying tenants of flats have several rights. A tenant asserting individual rights must usually be able to prove ownership of the lease for at least 2 years before acquiring any statutory rights. They have the right to extend their lease for the original term plus an additional 90 years at a peppercorn rent in return for the payment of a premium to the landlord. This right can be exercised individually and proves more common in practice than collectively purchasing the freehold.

Tenants of flats may also have the right to club together to collectively buy the freehold or to manage the freehold themselves, usually through a nominee company. This will depend on whether there is a commercial element to the building, the number of flats in the block, the number of flat owners who qualify, and of those, how many choose to participate. Each case is different, requires careful analysis and turns on its own facts. This right is less commonly exercised in practice as it requires the cooperation of several parties.

It is possible for a seller to transfer the benefit of his statutory rights to a buyer on completion of a sale provided the correct procedure is adhered to.

Valuation in the context of collective enfranchisement and lease extensions is complicated. A prudent qualifying tenant should therefore also take the advice of a specialist surveyor at an early stage.

We act for both landlords and tenants in this complex area and can advise you throughout the entire process.

Please see further information on our team of Commercial Property solicitors and our full range of services. 

Looking for expert legal advice?

Our Commercial Property Solicitors

For expert legal advice call our Commercial Property team
Reading 0118 951 6800 or Henley-on-Thames 01491 572 323

John Dingle

John Dingle

Partner, Commercial Property Law

Download vCard 0118 951 6802

Read Bio

Jane Gunnell

Jane Gunnell

Partner, Commercial Property Law

Download vCard 0118 951 6860

Read Bio

Luke McMath

Luke McMath

Partner

Download vCard 0118 951 6903

Read Bio

Katja Wigham

Katja Wigham

Partner, Commercial Property Law

Download vCard 0118 951 6933

Read Bio

Pippa Garrod

Pippa Garrod

Associate Solicitor, Dispute Resolution

Download vCard 0118 951 6916

Read Bio

Asma Muneer

Asma Muneer

Solicitor, Dispute Resolution

Download vCard 0118 951 6913

Read Bio

Gemma Smith

Gemma Smith

Associate Solicitor, Commercial Property Law

Download vCard 0118 951 6867

Read Bio

Louisa Baker

Louisa Baker

Senior Solicitor, Commercial Property Law

Download vCard 0118 951 6880

Read Bio

Geena-Mae Bucknall

Geena-Mae Bucknall

Solicitor, Commercial Property Law

Download vCard 0118 951 6872

Read Bio

Olivia Foster

Olivia Foster

Legal Assistant, Commercial Property

Download vCard 0118 951 6834

Read Bio

Rachel Swan

Rachel Swan

Solicitor, Commercial Property Law

Download vCard 0118 951 6877

Read Bio

Why Choose Us?

LEADING REPUTATION

We are widely acknowledged as one of the Thames Valley’s leading firms of Commercial Property solicitors, with conveniently located offices in Reading, Henley-on-Thames and London.

APPROACHABLE SERVICE

Listening carefully to our clients’ needs and aims, we are committed to providing you with clear, practical, commercially focused and effective legal advice, a responsive and highly personal service and, crucially, value for money.

EXPERTISE AND EXPERIENCE

Having acted for many of the UK’s leading lenders, advised on over £250m of development land deals in one year and in relation to some of the highest profile premises in Reading and the Thames Valley, you can trust in our significant expertise and experience.

RELATIONSHIPS WITH OTHER ADVISERS

Our established relationships and experience in working with lenders and other leading firms, including agents, surveyors and other solicitors, can help to minimise the likelihood and impact of any unforeseen issues or costly delays.

A JOINED UP APPROACH

Our comprehensive range of legal services allows you to manage and coordinate all of your commercial needs, and where relevant your private client interests, more efficiently and effectively using a single firm of solicitors.

“Blandy & Blandy’s excellent team is responsive, commercial and prepared to roll up their sleeves.”

Chambers UK