Issue extending lease on let flat

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K
K harrow
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Hi there
We own a one bed flat in London that we let out. WE have 75 years on the lease of this flat and have owned it for 9 years and want to extend the lease. We have negotiated with the free holder (its the first floor flat in a house) for a couple of years and 2 valuations down to a price but at the last minute the freeholder has insisted that a specific clause is added to the wording of the lease (shown below). Apparently this clause is implicit in the terms of the act you use to extend any lease, its part of the law but the freeholder wishes this to be front and centre, so there is no reason to print it again. We feel this is because he wants to put off any potential buyer in future as the clause implies he can terminate the lease and buy the property at any time, so he can then buy it off us at a discounted price.

Our question is if we say no to this being in and serve him notice, and it goes to a tribunal, can he still request/insist from the tribunal that this is added to the terms of the lease extension?

Thanks
Kevin


“8. For record purposes this Lease is not granted following service of a tenants notice to extend the Lease under Section 42 of the Leasehold Reform Housing & Urban Development Act 1993 (the Act”) (and therefore under Section 56 of the Act) notwithstanding this the parties AGREE that the following provisions which would have applied had the Lease been granted under Section 56 of the Act WILL APPLY

11.1 Pursuant to Section 59(3) of the Act no long lease created immediately or derivatively by way of sub-demise under the term hereby granted shall confer on the sub-tenant as against the Lessor any right under Chapter II of Part I of the Act to acquire a new lease.

11.2 The Lessor is entitled to and reserves the right to terminate the Lease as varied by this deed in accordance with the terms of Section 61 of the Act.”
22/06/2015 10:12

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