Intermediate leases
Intermediate leases are a feature in many blocks of flats but can also be found in leasehold houses. Where intermediate leases are present, the Act treats those interests as merged into the freehold for the purposes of determining the price a leaseholder must pay. This simplifies the valuation process for leaseholders, and in many cases reduces the price payable and reduce their costs.
	The Act introduces a new right for an intermediate landlord to reduce the rents that they pay where a ground rent is reduced to a peppercorn following a lease extension or ground rent buyout claim. In collective enfranchisements, the Act introduces a right for leaseholders to leave in place the parts of intermediate leases that are superior to leaseholders who qualify for enfranchisement, but do not participate in the claim. The Act also introduces certain protections for intermediate landlords and extends the right to a lease extension to certain sublessees.