Lease extension: the formal route
What will the new lease include
When your lease extension is completed, your new lease will follow certain legal rules set out in the Act.
Length of the new lease
You will get an extra 90 years added to however many years remain on your previous lease.
For example, if you have 70 years left, your new lease will run for 160 years in total.
Ground rent
Your new lease will have a peppercorn rent, which means you will no longer pay any ground rent for the whole new term. The new term is the previous lease term plus 90 years.
Other terms
The new lease will be based on the same terms as your previous lease.
Only a few small changes are allowed by law:
- minor updates to reflect changes since the previous lease was granted (for example, updates to facilities or wording that’s out of date)
- removal of clauses that are no longer needed because you now have a statutory right to extend (for example, old renewal or early-termination clauses)
- additions required by law, such as a rule that prevents granting another sublease long enough to give that tenant their own right to a new lease
Redevelopment clause
Your new lease must also include a standard clause giving the landlord a right to take back possession only after the end of your original lease term (not during the added 90 years) if they plan to redevelop the building.
The landlord would need to apply to court and pay you compensation equal to the full value of the remaining 90 years.
Even if your lease does not contain such a clause, the landlord has the right to terminate a new lease by application to the court on grounds of redevelopment, provided you are compensated for the loss.
- Last updated:
- 22 December 2025
- Next review:
- 22 December 2027
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