Extending a Short Term Lease

[andrew1]

A property up for sale has a 42 yr lease. The house is owned by a charity and they refuse to extend the lease.

 

a) Can anyone tell me if this can be challenged

b) is legal

c) or tell me how the lease can be extended?

 

 

Cheers

 

 

Sarah

[MrShed]

So when you say the "owners" refuse to extend the lease. - do you mean the leaseholder, or the freeholder? Makes a massive difference.

[andrew1]

The leaseholder has the lease term for 42 yrs and would like to extend it. The Freeholder is the Charity and won't extend. I'd just like to know if there is any way around this to get the Charity to extend. I was under the impression they had some kind of obligation legally, it's a fuzzy impression so I'd like something a little more concrete if someone knows.

 

Thanks

[Esio Trot]

The leaseholder has the lease term for 42 yrs and would like to extend it. The Freeholder is the Charity and won't extend. I'd just like to know if there is any way around this to get the Charity to extend. I was under the impression they had some kind of obligation legally, it's a fuzzy impression so I'd like something a little more concrete if someone knows.

 

You may have a right to renew, but you will need to look into this further. The website that covers this is lease-advice.org

 

There is a fly in the ointment though, and the following paragraph on the above website might affect you (I have itilisised the key clause):

But, even if the leaseholder satisfies these criteria he or she will not be a qualifying leaseholder if either of the following cases apply:

• 
  
• the landlord is a charitable housing trust and the flat is provided as part of the charity's functions
  
• the leaseholder is a business or commercial tenant

[andrew1]

Well people I thank you all for your contributions, but this is now a dead duck

 

The Charity we have established is the owner of a whole cluster of properties within the area, not just this one. They applied for some kind of arrangement with the government (which is above my head) to change things and the Gov't won't budge, so, as a charity they cannot split up the estate and have varying leases and they are going to hold onto the land for the 42 yrs until the leases for the whole lot run out and then no doubt sell the land to the highest bidder. As we only were looking at the one property no account had been taken of the entire estate and the Charity are looking at this as a long-term investment. So, thank you everyone, but that is the end of that little venture.

 

Your contributions have been much appreciated and have helped us flush out the realities.

[Ed999]

Provided the lease is not an exempt lease, there is a statutory right to obtain a lease extension under the 1993 Act (Leasehold Reform, Housing and Urban Development Act 1993):

 

Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

 

That Act provides for the tenants of a building to collectively buy the freehold of the building; or for an individual tenant to buy an extension of his lease (usually a further 150 years, I think).