The House of Lords in Earl of Cadogan v 26 Cadogan Square Limited (2008) has determined that a head-lessee of a residential / mixed use block is entitled under the Leasehold Reform (etc) Act 1993 to new long leases of individual flats within the block.

The landlord in Cadogan sought to argue that extending leases of individual flats would result in practical difficulties such as how to apportion rent and service charge and how to determine the terms of individual leases. The House of Lords’ response was that such matters could be resolved either by agreement or by the Leasehold Valuation Tribunal (LVT). How the LVT deals with the perceived difficulties in practice however remains to be seen and the decision is a real concern to freehold owners who have a property investor headlessee.