Surrender and Regrant of lease with new provisions.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Surrender and Regrant of lease with new provisions.

    A friend has recently asked to extend the current lease on their flat. They are doing it earlier than they need to (95ish yrs left) because it is so much cheaper. The freeholder is the local council. They have sent a deed for surrender and regrant. It comes with a schedule with New Provisions:

    The Landlord and Tenant hereby agree as follows:-

    1. The Landlord may:-
    1.1 at any time during the period of 12 months ending on ..... 2115; and
    1.2 at any time during the period of 5 years ending on .... 2205;
    apply to the Court under Section 61 of the Act for an order for possession of the
    Premises on the ground that for the purpose of redevelopment it intends to
    demolish or reconstruct or carry out substantial works of construction on the
    whole of a substantial part of any building containing the Premises and that it
    could not reasonably do so without obtaining possession of the Premises and the
    provisions of that Section and of Schedule 14 to the Act shall apply accordingly.

    2 No long Lease (as defined in Section 7 of the Act) granted immediately or
    derivatively by way of Sublease shall confer on the Subtenant (as against the
    Landlord) any right to acquire a new Lease under Chapter 11 of Part I of the Act.

    3 The Tenant shall include in any underlease to which Chapter II of the Act would
    apply but for Section 59(3) of the Act a provision stating that the underlease does
    not confer on the under tenant the right to a new Lease from the lessor in
    accordance with Chapter II of the Act.


    What is this all about? The council has been busy trying to knock down and rebuild estates lately but this only seems to apply for a short window at the end of the original lease (and a longer window at the end of the extension). Can freeholders add anything they want when extending?
    Assume I know nothing.

    #2
    No, they can't add "anything they want" though they often try - but they can add the first clause giving them the right to the property if they want to redevelop about the original expiry time.
    Not seen the other two before but they don't seem onerous to me....

    Comment


      #3
      Thank you.
      Assume I know nothing.

      Comment


        #4
        Hooper is ur friend using the formal or informal route?

        on the formal route there is no surrender / regrant of new lease. The formal route simply adds 90 yrs to the existing term with 0 ground rent. All other terms (covenants), remain exactly the same, as per the existing lease.

        i would suggest ur friend checks this request with a solicitor, if they have not instructed one already.

        Comment


          #5
          Originally posted by Babyspice View Post
          Hooper is ur friend using the formal or informal route?

          on the formal route there is no surrender / regrant of new lease. The formal route simply adds 90 yrs to the existing term with 0 ground rent. All other terms (covenants), remain exactly the same, as per the existing lease.

          i would suggest ur friend checks this request with a solicitor, if they have not instructed one already.
          I'll ask - thanks for that.
          Assume I know nothing.

          Comment


            #6
            Originally posted by Babyspice View Post
            Hooper is ur friend using the formal or informal route?

            on the formal route there is no surrender / regrant of new lease. The formal route simply adds 90 yrs to the existing term with 0 ground rent. All other terms (covenants), remain exactly the same, as per the existing lease.

            i would suggest ur friend checks this request with a solicitor, if they have not instructed one already.
            Almost 100% incorrect

            Comment


              #7
              Originally posted by Babyspice View Post
              Hooper . All other terms (covenants), remain exactly the same, as per the existing lease.
              The 1993 Act does reserve the right for the landlord to redevelop the property when the original term ends - The landlord has to pay compensation should he elect to do so to the tenant - ie buying the property at its market value

              Comment

              Latest Activity

              Collapse

              • Right to Manage Costs
                by Pariah81
                Hi,

                I am part of a residents association that is exploring right to manage (RTM).

                We are a 30 flat block in the Ealing area.

                We want to get advice on the process so how much should we be expecting to pay for our legals?

                I'm also aware we have to pay...
                21-09-2021, 13:48 PM
              • Reply to Right to Manage Costs
                by lampshade
                ERMmmm....it would be very interesting especially as our Freeholder, who owned the company that Managed the building gave the contract to another fringe company, and the fees doubled to £10k pa....and if 12 of us leave that will cause fee problems for the remaining 2 flats, but not our problem....will...
                23-09-2021, 17:50 PM
              • Reply to Right to Manage Costs
                by Section20z
                Yes, you should be able to. We did something similar for one of two blocks with same name just different flat numbers. First step is to get 6+ owners to take part and form a company to serve the notice. A reluctant freeholder will fight every step so you may need professional help to get it right....
                23-09-2021, 17:35 PM
              • Reply to Right to Manage Costs
                by lampshade
                Interesting....I have one lease in a total of 3 blocks totalling 34 flats. All managed under one managing agent appointed by the FH.
                But each block, whilst seemingly are all connected there are 3 separate blocks of about 11 flats in each. Each block has both front and back entrance, and unique...
                23-09-2021, 15:29 PM
              • Reply to Reasonable solicitor fees?
                by eagle2
                You can insist on a summarised time record showing the number of hours spent by each grade of solicitor on the different aspects of the work involved. You can then compare it with your own solicitor's time records in order to raise a specific complaint.

                Intead though, I suggest that you...
                23-09-2021, 14:42 PM
              • Reasonable solicitor fees?
                by LizLease
                After six long and tedious months of negotiations to extend the lase on a flat, we are nearing completion and I have been sent the final balance.

                I was shocked to be presented with a £2,700 bill for the freeholder's solicitor fees. When I first inquired about renewing the lease, the freeholder...
                21-09-2021, 17:17 PM
              • Reply to Negotiating a lease extension
                by sgclacy
                Does that include the surveyor fee ?...
                23-09-2021, 14:36 PM
              • Negotiating a lease extension
                by LizLease
                Hi all, I am new to the forum.
                I am looking to extend the lease on a flat (currently under 70 years).
                I received a quote from the freeholder and a valuation from a surveyor (£3k lower than the freeholder's figure).
                I spoke to the leasehold Advisory Service who said to ask the surveyor...
                21-01-2021, 12:44 PM
              • Reply to Negotiating a lease extension
                by LizLease
                Thank you both

                sgclacy, if you are talking about the "deed of surrender and regrant of lease", that is a 10 page document and as far as I am ware, there are no specific issues or complications with it. It's a flat in a 30 year-old small block of flats and there are no odd clauses...
                23-09-2021, 12:17 PM
              • Reply to Reasonable solicitor fees?
                by LizLease
                Thanks for the replies.
                It has taken 6 months because the surveyor - who was dealing with the negotiations - was useless and not proactive / reactive. Add to that the fact that we had reached a deal I said OK to, then the freeholder and their solicitor turned around and said actually no, they...
                23-09-2021, 12:09 PM
              Working...
              X