What does 'Statutory Lease Extension' imply?

The term 'Statutory Lease Extension' refers to a legal process established under the Leasehold Reform, Housing and Urban Development Act 1993, which allows leaseholders to extend their existing lease for an additional 90 years while also reducing the ground rent to a nominal amount. This process is particularly beneficial for leaseholders whose property may have a short lease, as prolonged lease terms can significantly increase the property's value and improve marketability.

By extending the lease in this way, leaseholders are safeguarded against the diminishing value that often accompanies shorter leases. Furthermore, a nominal ground rent makes the property more affordable in the long run. This process is regulated by law, ensuring that both leaseholders and freeholders (landlords) have clear and established rights and obligations during the extension process. This legal framework sets it apart from the other options, which do not represent the specific process of lease extension as defined by statutory provisions.