Introduction
Flats are mainly let by way of leases: these long leases are bought and sold in the market. There are rare occasions that they are sold commonhold, but more frequently there are sales with “share of freehold”.
Even with “share of freehold” flats, the share is in the freehold company but the flat remains leasehold.
The Leasehold Reform Housing and Urban Development Act 1993 has been amended a number of times since it was introduced, most recently by the Commonhold and Leasehold Reform Act 2002.
Now, unlike when the Act was first introduced, most flat owners can extend their lease. The requirement is that your interest in the flat has to be registered at the land registry for a period of 2 years. (It is not 2 years ownership but 2 years as registered ownership). You are entitled to a 90-year lease extension at £nil rent (a peppercorn).
You are also able to buy your freehold, enfranchise, as soon as you are the registered owner, but you need to ensure the other elements of qualification are met.