Decision

The Council is the freehold owner of a block of flats in Farleys Close. Flat 23 was originally sold 6 June 1988 under the provisions of the Right to Buy for a term of 125 years from 6 June 1988 at a ground rent of £10. The current lessee wishes to extend the term of the lease to make it more saleable on the open market. The lessee has exercised their statutory rights under Leasehold Reform Housing and Urban Development Act 1993 to require the grant of longer lease. Under the legislation, the Council as the competent landlord, is required to grant a new lease to the owner of the flat for an additional term of 90 years on top of the unexpired term of the lease, and on the same terms as the existing lease, save that the annual ground rent will be a peppercorn if demanded.
The consideration for a new lease is governed by the legislation and determined by specialist valuers. The lessee will be required to pay all of the Council’s legal and surveyors costs.

Reasons for the decision

To enable the lessee to sell on the open market

Alternative options considered

None