Tenant Granted Statutory Lease Extension When Landlord Untraceable

OUTCOME: Allowed

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case reference : LON/00AZ/OLR/2025/0906

Property : 24 [ADDRESS], [POSTCODE]

Applicants : [redacted]

(2) [COUNSEL] [NAME] : Mr. [COUNSEL] Solicitors

Respondents : [redacted] : Not applicable (missing landlord) Application under sections 50 and 51 of the Leasehold Reform Housing and Urban Development Act 1993 Tribunal members : Mr. [NAME] [NAME] Mr. [NAME] [NAME] of Decision : 09 December 2025

DECISION

© CROWN COPYRIGHT 2025 Type of application :

This has been a paper based determination and decision which has been consented to by the Applicants. The tribunal had before it an electronic 168-page trial bundle which was prepared and submitted by the Applicants in accordance with the directions.

Decisions of the Tribunal

1) The tribunal determines that the price to be paid into court by the applicant for the new lease on statutory terms is £1,448.00.

2) The tribunal accepts the terms of the draft new lease.

The Background

1. This is an application under sections 50 and 51 of the Leasehold Reform Housing and Urban Development Act 1993 (“the 1993 Act”) pursuant to an order made by Deputy District Judge Mohabir, sitting at the County Court at Bromley on 10 March 2025.

2. Sections 50 and 51 of the 1993 Act concern claims for a statutory lease extension where the relevant landlord cannot be found. It enables the court to make a vesting order in respect of any interests of the landlord which are liable to acquisition.

3. Under section 51 of the 1993 Act, the role of the tribunal is to determine the appropriate sum to be paid into court in respect of the landlord’s interests.

4. The applicants in this matter are [NAME] and [NAME]. They are the qualifying tenants of 24 [ADDRESS], [POSTCODE] (“the Property”). The respondent freehold owner is Mr. [RESPONDENT].

5. On 15 March 2024, [NAME] as representative for the applicants issued a Part 8 Claim at the County Court at Croydon for an order pursuant to section 50(1) of the 1993 Act seeking a new lease in the Property. As such 15 March 2024 is the date of valuation and the remaining lease length at valuation date is 85.03 years. The applicant has been unable to ascertain the whereabouts of the respondent. As a result of an order made on 29 May 2024, the claim was transferred to the County Court at Bromley.

6. The applicant applied for a vesting order under section 49(3) of the 1993 Act. The vesting order was granted subject to the determination of the valuation and terms of the acquisition of a new lease by this tribunal.

7. The applicant provided the tribunal with a valuation report prepared by Mr. [NAME] dated 21 November 2025 within the trial bundle.

8. The Tribunal examined the contents of the report provided by Mr. [NAME].

9. Mr. [NAME] provided details of three comparables in his report which contained a table of the comparable properties along with adjustments. Mr. [NAME] states a Long Lease Value of £319,230 based on the adjusted comparables which are clearly set out.

10. Mr. [NAME] report sets out a 5% deferment rate and 10% capitalization rate in his lease extension premium calculation along with justification for these rates. As a result Mr. [NAME] is of the view that the premium to be paid for the statutory lease extension is £5,130 as at the valuation date of 15 March 2024.

The Determination

11. After careful scrutiny the tribunal accepts the opinions expressed by Mr [NAME] in his valuation report dated 21 November 2025 including the long lease value and capitalization and deferment rates which are appropriate for the Property.

12. The tribunal is advised at (6) of the order that the summarily assessed costs of this claim are £3,682. This sum to be set of against the premium payable to the court.

13. Accordingly, the tribunal determines that the premium to be paid in respect of the new lease is £5,130 less the summarily assessed costs of £3,682. This amounts to a sum of £1,448.

14. The Tribunal also approves the new lease included in the bundle at subject to the inclusion of £1,448 at LR7 and Para 2 which currently states £15,000 and needs to be amended to £1,448. Additionally £1,448 is to be paid into court.

15. This matter should now be returned to the County Court sitting at Bromley under Claim Number L00CR714 in order for the final procedures to take place.

Name: Mr. [NAME] [NAME]: 9 December 2025

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28 day time limit, such application must include a request for an extension of time and the reason for not complying with the 28 day time limit; the tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber)

Appendix - Relevant Legislation

Leasehold Reform, Housing and Urban Development Act 1993 (as amended)

Section 50 Applications where landlord cannot be found (1-3).

(1) Where—

(a)a qualifying tenant of a flat desires to make a claim to exercise the right to acquire a new lease of his flat, but

(b)the landlord cannot be found or his identity cannot be ascertained, the court may, on the application of the tenant, make a vesting order under this subsection.

(2) Where—

(a)a qualifying tenant of a flat desires to make such a claim as is mentioned in subsection (1), and

(b)paragraph (b) of that subsection does not apply, but

(c)a copy of a notice of that claim cannot be given in accordance with Part I of Schedule 11 to any person to whom it would otherwise be required to be so given because that person cannot be found or his identity cannot be ascertained,

the court may, on the application of the tenant, make an order dispensing with the need to give a copy of such a notice to that person.

(3) The court shall not make an order on any application under subsection (1) or (2) unless it is satisfied—

(a)that on the date of the making of the application the tenant had the right to acquire a new lease of his flat; and

(b)that on that date he would not have been precluded by any provision of this Chapter from giving a valid notice under section 42 with respect to his flat.

Section 51 Supplementary provisions relating to vesting orders under section 50(1).

(1)A vesting order under section 50(1) is an order providing for the surrender of the tenant’s lease of his flat and for the granting to him of a new lease of it on such terms as may be determined by a leasehold valuation tribunal to be appropriate with a view to the lease being granted to him in like manner (so far as the circumstances permit) as if he had, at the date of his application, given notice under section 42 of his claim to exercise the right to acquire a new lease of his flat.

(2) If a leasehold valuation tribunal so determines in the case of a vesting order under section 50(1), the order shall have effect in relation to property which is less extensive than that specified in the application on which the order was made.

(3) Where any lease is to be granted to a tenant by virtue of a vesting order under section 50(1), then on his paying into court the appropriate sum there shall be executed by such person as the court may designate a lease which—

(a)is in a form approved by a leasehold valuation tribunal, and

(b)contains such provisions as may be so approved for the purpose of giving effect so far as possible to section 56(1) and section 57 (as that section applies in accordance with subsections (7) and (8) below); and that lease shall be effective to vest in the person to whom it is granted the property expressed to be demised by it, subject to and in accordance with the terms of the lease.

(4) In connection with the determination by a leasehold valuation tribunal of any question as to the property to be demised by any such lease, or as to the rights with or subject to which it is to be demised, it shall be assumed (unless the contrary is shown) that the landlord has no interest in property other than the property to be demised and, for the purpose of excepting them from the lease, any minerals underlying that property.

(5) The appropriate sum to be paid into court in accordance with subsection (3) is the aggregate of—

(a)such amount as may be determined by a leasehold valuation tribunal to be the premium which is payable under Schedule 13 in respect of the grant of the new lease;

(b)such other amount or amounts (if any) as may be determined by such a tribunal to be payable by virtue of that Schedule in connection with the grant of that lease; and

(c)any amounts or estimated amounts determined by such a tribunal as being, at the time of execution of that lease, due to the landlord from the tenant (whether due under or in respect of the tenant’s lease of his flat or under or in respect of any agreement collateral thereto).

(6) Where any lease is granted to a person in accordance with this section, the payment into court of the appropriate sum shall be taken to have satisfied any claims against the tenant, his personal representatives or assigns in respect of the premium and any other amounts payable as mentioned in subsection (5)(a) and (b).

(7) Subject to subsection (8), the following provisions, namely—

(a)sections 57 to 59, and

(b)section 61 and Schedule 14, shall, so far as capable of applying to a lease granted in accordance with this section, apply to such a lease as they apply to a lease granted under section 56; and subsections (6) and (7) of that section shall apply in relation to a lease granted in accordance with this section as they apply in relation to a lease granted under that section.

(8) In its application to a lease granted in accordance with this section—

(a)section 57 shall have effect as if—

(i)any reference to the relevant date were a reference to the date of the application under section 50(1) in pursuance of which the vesting order under that provision was made, and

(ii)in subsection (5) the reference to section 56(3)(a) were a reference to subsection

(5)(c) above; and (b)section 58 shall have effect as if— (i)in subsection (3) the second reference to the landlord were a reference to the person designated under subsection (3) above, and (ii)subsections (6)(a) and (7) were omitted.