This case is of considerable importance to landlords and head tenants of property that includes flats. It involves interpreting the rights of tenants to take a new extended lease of a flat under the Leasehold Reform, Housing and Urban Development Act 1993(1993 Act).

The Court of Appeal has held that a head tenant will not be entitled under the 1993 Act to a new extended lease of an individual flat comprising part of the headlease demise.

The court highlighted the fact that the 1993 Act does not provide for management of the common parts, for definition of the curtilage of the flat or for apportionment of the head lease rent between the new flat lease and existing head lease.

This decision is important for freeholder landlords who wish to resist a head tenant's application for a new lease of a flat under the 1993 Act, or for head tenants who are considering pursuing such a claim or have already served a section 42 notice on their landlord.

NOTE ADDED: The House of Lords has allowed the landlords' appeal against this decision. See Legal update, Head tenants' entitlement to new lease of individual flat (House of Lords).