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News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
As most leaseholders are aware, the Leasehold Reform Acts enacted in 1967 and 1993 give them the right to extend their lease. Although the owners of Crown land (which, in this context, means the Crown Estate, the Duchy of Lancaster, the Duchy of Cornwall, a government department and a Minister in charge of that department) are not bound by these statutes (“the Acts”), the Crown authorities have given an undertaking to Parliament that they would agree to lease extensions under the same qualifications and terms as provided for in the Acts. The Crown is, therefore, said to be acting “by analogy” to the Acts.
Under the 1993 Act, a qualifying tenant of a flat is entitled to purchase a new lease of his flat at a peppercorn rent and for a term extended by 90 years but, otherwise, on the same terms as the existing lease.
Broadly speaking, in order to qualify for this right, the property must comprise a flat, the tenant must have been the registered owner of the flat for a period of no less than two years and the lease of the flat should be a “long lease” (i.e. one granted for a term of over 21 years).
A claim is made by serving a “notice of claim” on the landlord and any third party named in the lease. If the claim is admitted, the landlord should negotiate with a view to agreeing the premium payable for the grant of the new lease. If the parties cannot reach agreement, subject to strict time limits, either party can refer the matter to the First-tier Tribunal for a determination of the terms for the new lease. The Crown will “by analogy” follow these same procedures.
While there are certain circumstances in which the Crown will apply different procedures to those set out in the Acts for leaseholders seeking to enfranchise (e.g. where the property stands on land held by the Crown inalienably, where the property is within the curtilage of a historic Royal Park or where it has a long historic association with the Crown) these do not apply to lease extensions.
So the advice to long leasehold flat owners who have the Crown as a landlord is, yes, the Queen can be required to extend your lease and you should think about applying before the term of your lease falls below 80 years so as to minimise what has to be paid to Her Majesty for extending your lease.
Jonathan Achampong is Senior Associate at Wedlake Bell LLP