The 1993 Leasehold Reform Housing and Urban Development Act (as amended by the 1996 Housing Act and the Commonhold and Leasehold Reform Act 2002) gives a lessee the right to extend the lease, so long as the lessee has owned the flat for two years. The Act specifies that the extension to the lease is for 90 years added to the existing unexpired term and ground rent is expunged.

Your solicitor will serve a Section 42 Initial Notice served on the freeholder stating what the flat comprises, details of the lease and the price offered for the premium.

Within two months the freeholder is required to serve a Counter Notice acknowledging the lessee’s right to a lease extension. Normally the freeholder, in his Counter Notice, will not agree to the figure that has been offered so negotiations then take place.

Hopefully a price can be agreed, but if not (which is rare), the lessee has six months from the date of the Counter-notice within which they can apply to the First Tier Tribunal (Property Chamber) who will determine the price to be paid.

Yes, you can. However, it will likely narrow down the market to cash purchasers who will want a significant discount on the price of the flat.