The Crown Estate

The Crown Estate is not formally bound by the Leasehold Reform Acts in the same way that private or corporate landlords are. However the Crown Estate have given an undertaking to Parliament that in most cases they will act within the spirit of the legislation and agree to being bound on a voluntary basis with the principles of the legal rights, provided to tenants under the Leasehold Reform Acts to either acquire a lease extension or the freehold to their premises.

Crown properties are either located in “Excepted Areas or Non-Excepted Areas.”
The Crown Estate will act by analogy with the provisions of the 1967 Act and the 1993 Leasehold Reform Acts in relation to enfranchisement and lease extension claims within an “Excepted Area.”  However in certain parts of The Crown Estate the undertaking given to Parliament does not apply. These are known as the “Excepted Areas”.  However, The Crown Estate has a voluntary policy of acting within the spirit of the legislation for properties in such areas.

There are some subtle differences in respect of the valuation approach. For example the legal framework for assessing the level of premium payable (in a conventional lease extension case) is contained within Schedule 13 of the 1993 Leasehold Reform, Housing & Urban Development Act 1993 (as amended by the Housing Act 1996 and the Commonhold & Leasehold Reform Act 2002). Essentially the valuation process assumes that a ninety-year extension is added to the existing unexpired term, with the ground rent reverting to a peppercorn.  In an “Excepted Area” the maximum term the Crown will grant will be for 150 years and unlike a lease extension in a “Non-Excepted area”, the terms of the lease will be a matter for negotiation between the parties and a ground rent will be payable to the Crown.

Contact Mike Stapleton & Co.

For a free informal chat about your lease extension or any other matter call Mike Stapleton FRICS on 0207 125 0499 or feel free to fill in the form below and we will get back to you as soon as possible.