Can My Freeholder Refuse to Extend My Lease?

One of the biggest concerns leaseholders have is whether their freeholder can simply refuse a lease extension. The good news is that, if you qualify under the law, your freeholder cannot stop you extending your lease. However, they may try to resist or delay the process.

The Statutory Right to Extend

Under the Leasehold Reform, Housing and Urban Development Act 1993, most flat owners have the legal right to extend their lease by 90 years and reduce ground rent to zero. If you meet the eligibility criteria (such as owning your flat for at least two years), the freeholder is obliged to grant the extension.

What the Freeholder Can Do:

While the freeholder cannot refuse outright, they can:

· Challenge the premium – They may argue that your proposed price is too low. This is where surveyor negotiations come in.

· Dispute the process – If a Section 42 Notice contains errors, they may claim it is invalid.

· Delay negotiations – Some freeholders take the full statutory time limits to respond, which can slow things down.

If Agreement Cannot Be Reached

If you and your freeholder cannot agree the premium or terms, the matter can be referred to the First-tier Tribunal (Property Chamber). The Tribunal has the power to decide the premium and resolve disputes, ensuring you still secure your extension.

The Only Exceptions

A freeholder may avoid granting a statutory lease extension in rare circumstances, such as if:

· You don’t qualify under the 1993 Act.

· The property falls into an excluded category (e.g. some charitable housing trusts).

Outside of these exceptions, refusal is not an option.

Your freeholder cannot refuse a statutory lease extension if you qualify under the law. While they may dispute the price or delay the process, your rights are protected, and the Tribunal can step in if necessary.

At Olden Property, we negotiate directly with freeholders on behalf of leaseholders to secure fair premiums and keep the process moving.