There is no obligation to grant a lease extension to a leaseholder who simply asks for one. However, if a notice is served by a qualifying leaseholder and followed through, then the leaseholder has a statutory right to compel the landlord to grant the lease extension to 90 years on top of the unexpired term. If you fail to respond to the notice that is served, with a counter notice in the appropriate period then you are deemed to grant the lease extension at the premium proposed by the leaseholder.
Accordingly, if notice is served and followed through you will have to grant a lease extension to the flat owner.
If you are served with any kind of statutory notice then this should not be ignored as the consequences can be disastrous. If you are served with a notice under Section 13 or Section 42 of the Leasehold Reform Housing and Urban Development Act 1993, then your reasonable costs will be covered by the flat owner(s) serving the notice. You should therefore take professional advice as soon as possible.
- More information for freeholders.