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Long Leases

28 November 2015 has been fixed as the “appointed day” upon which tenants' rights in certain long leases will be converted to full ownership. Affected leases are non-residential leases with more than 175 years left to run; and residential leases originally of at least 175 years in length and with more than 100 years still left to run. 
 
Certain leases are excepted such as where the annual rent is over £100 and leases of mineral rights and rights to install and maintain pipes and cables are also unaffected. Tenants may also exempt a qualifying lease by registering a notice not later than two months before the appointed day opting out of conversion. Landlords can also do so by registering an agreement with the tenant or an order by the Lands Tribunal. There are also provisions giving the Landlord a right to claim compensation and time limits within which this must be done. 
 
Where certain leasehold conditions under the Act qualify to convert into real burdens, those burdens will be subject to the Title Conditions (Scotland) Act 2003.  
 
It is anticipated around 9,000 leases will be eligible to convert into ownership under the Act which has significant implications for those affected. 
 

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