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Track your progress >Land Registry clarifies its guidance against using deeds of variation to extend leases under LRHUDA 1993
The Land Registry has amended Appendix 2 of its Practice Guide 27 that deals with the leasehold reform legislation to clarify its requirements for the registration of extended leases granted pursuant to the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993).
The current edition of the guide replaces the April 2013 edition.
Some practitioners have mistakenly believed that a deed of variation can be used to extend a lease under LRHUDA 1993. The Land Registry has previously advised against this in Practice Guide 27. However, some practitioners have no doubt that a deed of variation extending the term would nevertheless be acceptable to the Land Registry if the deed contained the following statement referred to in section 196(2) of the Land Registration Rules 2003 (SI 2003/1417) (LRR 2003):
"This lease is granted under section 56 of the Leasehold Reform, Housing and Urban Development Act 1993.”
The Land Registry has made it clear that, if a deed of variation is entered into that extends the term of an existing lease and takes effect as a deemed surrender and regrant, it will not constitute a new lease under section 56 of LRHUDA 1993, even if it contains the above-mentioned statement.
For a form of lease for use when the landlord and tenant are entering into a new lease under section 56, see Standard document, New lease of a flat under the Leasehold Reform, Housing and Urban Development Act 1993.
For more information on the procedure that should be followed when a tenant claims a lease extension of a residential tenancy under LRHUDA 1993, see Practice note, Procedure for claiming a lease extension for a flat.
Source: Land Registry Practice Guide 27 - The leasehold reform legislation.