What is your tenant entitled to claim?
Subject to the payment of a premium, a qualifying tenant is entitled to apply for the following:
- A new lease with a term of 90 years plus the unexpired term of their existing lease; and
- The rent to be varied to a peppercorn (ie. none at all).
Under the legislation we are able to negotiate on your behalf to make the following amendments to the lease as it is extended:
- The new lease to contain a clause allowing you to take possession of the property for redevelopment in the future;
- To modernise the existing lease in certain circumstances, where permitted.
The claim for a lease extension is not seen as a penalty against you as the landlord and your tenant will therefore have to pay your reasonable legal and valuation costs in connection with his claims (subject to limitations on recovery).
Further questions? View our FAQ's.
What are your options if you have received this notice?
We would always recommend that you serve a counter notice prepared by Tolhurst Fisher LLP. This is a notice served on your behalf in response to the notice served by your tenant. You have five possible options when serving the counter notice:
- Admit your tenant’s right to obtain an extension and accept all of their proposals;
- Admit your tenant’s right to obtain an extension but reject some of their proposals (most often the suggested premium) and offer your own proposals in their place;
- Admit your tenant’s right to claim an extension but claim that their Notice is invalid on certain grounds where available;
- Deny that your tenant has the right to obtain an extension and give reasons for this denial (where your tenant or the flat does not qualify);
- Claim the right of redevelopment (NB: this must be a genuine claim and not merely a tool to allow landlords to refuse to grant lease extensions).