“I want to retire, but the lease on my house is soon to expire”
This is a good question and one that comes up from time to time, particularly in central London where there is often a cost/benefit debate about extending where the term is below 10 years. Most of the compensation is paid in respect of the ‘reversion’ – i.e. the ‘paper profit’ available to the landlord when the lease expires and the property ‘reverts’ back into their ownership.
When a long lease runs out the flat owner has the right to remain in occupation paying a market rent for the property. However, the landlord can serve a notice under the Housing Act 1989 to bring the long leasehold to an end. If the landlord serves this certain kind of notice within the last 12 months of the lease term then the flat owner is prevented from being able to exercise their right under the 1993 Act and bring a claim to an extended lease.
There are a number of other points to consider, such as dilapidations, however it is good to see these issues getting an airing in the wider press.