Surrender and Regrant of lease with new provisions.

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    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

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