Can a Freeholder Refuse to Extend a Leasehold?

Answer

A freeholder may be able to refused to extend your leasehold. This depends on how long you have occupied the property. If you have occupied the property for less than 2 years, the freeholder is not legally required to grant you a lease extension. However, if you have occupied the property for more than 2 years, and there are at least 21 years remaining on the lease from when you purchased it, it is your statutory right to extend the lease under the Leasehold Reform Housing and Urban Development Act 1993. Under the Act, you have the right as a leaseholder to extend your lease by up to 90 years on a flat, or 50 years on a house. If your freeholder refuses to agree to the lease extension or does not respond to your enquiries, you should contact a solicitor to start the formal process, which involves serving a Tenant’s Notice to the freeholder.

If you have occupied the property for less than 2 years, you can try to negotiate for an extension with the freeholder. This is called an informal lease extension, however, an issue with this is that the freeholder can choose to withdraw at any time.