Part 2 - Leasehold enfranchisement and extension Section 36: LRHUDA 1993: determining price payable for collective enfranchisement or new lease
This Section makes amendments to the LRHUDA 1993 to provide that the price payable to acquire the freehold of a block of flats, or a lease extension of a flat, must be calculated in accordance with Section 37. The amendments made by this Section also ensure that, when a shared ownership leaseholder claims a lease extension, only the rent payable in respect of the tenant’s share in the flat is to become a peppercorn on the grant of the extended lease (so any rent paid by the shared ownership leaseholder in respect of the landlord’s share is unaffected by the lease extension claim).