Absent Freeholder Lease Extension

If you're a leaseholder looking to extend the lease on your flat but your absent freeholder or absentee landlord cannot be found, you face a unique challenge in the statutory lease extension process. You cannot serve the required Section 42 Notice because the freeholder is missing.

In these circumstances, the legal pathway forward involves applying to the courts for a Vesting Order. This court order allows the lease extension to proceed despite the freeholder's absence.

This article will guide you through exactly what to do if your landlord is absent, explaining how to:

• Search for your absentee freeholder.
• Apply for a Vesting Order.
• Understand the likely timescales involved.
• Anticipate the associated costs.

What is the law when a Freeholder is absent?

When dealing with an absent freeholder or absentee landlord during a statutory lease extension, the relevant legislation is the Leasehold Reform, Housing and Urban Development Act 1993.

Specifically, Section 50 (applications where the landlord cannot be found) addresses this situation directly.

In simple terms, Section 50 of the Act grants the court the power to make a Vesting Order on the application of a qualifying leaseholder if the landlord (absent freeholder) cannot be found or identified.

This is crucial because you cannot serve a formal Section 42 Notice on a freeholder you cannot locate. The Vesting Order allows your lease extension claim to proceed through the court process.

Section 50 also establishes other key legal aspects for these cases, including that the premium payable for the lease extension under a Vesting Order will be determined by the Tribunal (First-tier Tribunal, Property Chamber).

Furthermore, the law requires that before making a Vesting Order, the court may stipulate that the leaseholder must take reasonable steps to prove the freeholder is genuinely absent and cannot be traced.

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How do you prove a Freeholder is absent?

The court may require you, as the leaseholder, to take steps to try and trace the absent freeholder before granting a Vesting Order. Failing to make all reasonable attempts to locate the absentee landlord could lead to your application to court being rejected.

To demonstrate to the court that you have made efforts to find the freeholder, you must undertake comprehensive and well-documented searches.

While the exact requirements can vary slightly depending on the specific court and case, commonly required steps to prove an absentee freeholder include:

• Placing at least two advertisements in the local newspaper for the property.
• Hiring a professional search agent specifically to attempt to locate the freeholder.
• Physically visiting the last known address of the freeholder.
• Checking official probate records to see if the freeholder is deceased.
• Conducting searches at the Land Registry for any other relevant titles or addresses associated with the freeholder.
• If the freeholder is believed to be a company, conduct searches at Companies House to check its status and registered address.
• Checking the electoral roll.

Keep records of all your search attempts, including dates, methods, and outcomes. These searches must also be relatively recent, indicating to the court that the freeholder cannot be traced.

Relying on just one or two methods might be deemed insufficient by the court and could jeopardise your Vesting Order application. Your solicitor will guide you on the necessary scope of searches and help you prepare the comprehensive evidence bundle required for the court application. Don't make this mistake.

Lease Extension Vesting Order Process

While the statutory lease extension process for known landlords begins with serving a Section 42 Notice, the steps differ when the freeholder cannot be found.

Here is an outline of the typical Lease Extension Vesting Order Process:

• 1

  Check your eligibility: Firstly, you must confirm you are a qualifying tenant under the Leasehold Reform, Housing and Urban Development Act 1993. Only a qualifying tenant of a flat has the legal right to a statutory lease extension.

• 2

  Get a Lease Extension Valuation: You will need a professional lease extension valuationto determine the likely premium payable for the additional 90 years on your lease (at a peppercorn rent).

  Even with an absent freeholder, this premium must be paid. Instructing a RICS-accredited valuer who specialises in lease extensions is essential for this step.

• 3

  Attempt to find your Freeholder: Before applying to the court, you must demonstrate that you have made all reasonable attempts to find your absentee freeholder. This involves searches and gathering evidence to satisfy the court you have been unable to trace them.

• 4

  Apply to the Court for a Vesting Order: Since you cannot serve a Section 42 Notice on a freeholder who cannot be found, you apply to the County Court for a Vesting Order under Section 50 of the 1993 Act.

  This application requires detailed evidence of your efforts to trace the freeholder and confirmation of your eligibility and the property's qualification.

  If the court is satisfied, it will grant the Vesting Order, dispensing with the need for the Section 42 Notice and typically directing the matter to the Tribunal for premium determination.

• 5

  Apply to Tribunal to determine the premium and terms: After the court grants the Vesting Order, you will need to apply to the Tribunal (First-tier Tribunal, Property Chamber). The Tribunal's role in absent freeholder cases is to determine the statutory premium payable for the lease extension and finalise the terms of the new lease.

  They will consider your RICS valuer's report and potentially evidence from their own appointed valuer.

• 6

  Complete the Lease Extension: Once the Tribunal has determined the premium and terms, the case returns to the County Court. The court will make the final Vesting Order, legally completing the lease extension in the absence of the freeholder.

  The determined premium is usually paid into court, to be held in case the freeholder (or their successors) later reappears.

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Is it cheaper to extend when your Freeholder is absent?

It might seem logical to think that extending your lease with an absent freeholder would be cheaper, perhaps because there's no one to negotiate the premium with or even pay it directly.

However, this is a common misconception. The premium for the lease extension is still legally due and determined by the Tribunal, payable into court.

Furthermore, the process for absent freeholders is typically more complex and therefore more costly than a standard statutory lease extension where the freeholder is present.

Here are a few key points regarding the costs and timeline:

Longer process = more fees

The administrative stages for finding your freeholder and undertaking searches to prove their absence mean there's additional work to be done compared to the statutory process.

This can take 12-18 months or more, whereas the standard process for a more straightforward case can take 6-12 months.

Additional legal and court costs

While you won't incur the freeholder's costs for negotiation, you will face additional expenses specific to the absent freeholder process. These include:

• Your solicitor's fees for conducting and evidencing comprehensive searches, preparing the detailed court application for the Vesting Order (often a Part 8 application), dealing with court procedures, and preparing the Tribunal application. Solicitor fees for this additional work can add £1,500 to £5,000+ to the overall cost, depending on the complexity of tracing and the court process.
• Mandatory court fees for the County Court application (typically around £377 - £404 as of Spring 2025).
• Mandatory First-tier Tribunal (Property Chamber) fees (an application fee of around £110 and potentially a hearing fee of around £220 if a hearing is required).
• Costs of professional tracing agents (ranging from £100s to £1000+, depending on the difficulty of locating the freeholder).
• Costs for placing newspaper advertisements (these vary significantly depending on the publication and region, but can easily amount to several hundred pounds).

Limited cost recovery

While it is sometimes possible for limited costs (often related to the court application itself) to be awarded by the court and deducted from the premium held by the court, this is not guaranteed and typically does not cover all your legal, valuation, or tracing expenses. You will need to fund these yourself upfront.

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