§ Mr. Wigleyasked the Secretary of State for Wales if he will ensure that the present review of the Leasehold Reform Act takes into consideration the plight of leaseholders currently outside the scope of his present Act by virtue of having priorities with extended or renewed leases.
§ Mr. ArmstrongI have been asked to reply.
Since the provisions about extension and renewal of leases may not be fully understood it may be helpful if I explain them briefly.
The Leasehold Reform Act 1967 offers a qualified leaseholder a choice of enfranchisement—that is, the right to buy the freehold—or a 50-year extension of his lease. If he obtains an extension lease he will still have the right to enfranchise during the remainder of the term of his original lease. Once the 50-year extension has begun, however, he loses the right to enfranchise under the Act, but this need not prevent him from negotiating with the landlord for the purchase of the freehold.
Where a landlord has granted a new tenancy in continuance of the original long tenancy the leaseholder retains his 280W rights under the Act even if the new tenancy is for less than 21 years provided that it is still at a low rent—that is, less than two-thirds of the rateable value of the house on 23rd March 1965 or the date of the commencement of the lease if later.
I would urge anyone who is uncertain of his position to seek legal advice.