Ultra-long leases convert to ownership

Tenants with leases over 175 years long will now become owners of their property as a result of legislation that has come into force.

The Long Leases (Scotland) Act 2012 simplifies property law, converting virtual ownership into actual ownership for tenants of ultra-long leases.

The legislation, which completes a series of Scottish property law reforms, will affect around 9,000 ultra-long leases in Scotland.

Most last for 999 years but periods vary and the leases can be up to 1 million years long.

Minister for Community Safety and Legal Affairs, Paul Wheelhouse, said: “Until now, the law around ultra-long leases has been complicated and cumbersome, despite tenants being really the owner in all but name.

“That’s why I am delighted this legislation will make life easier for tenants and protects them from unacceptable conditions on their property.

“The changes help lenders and solicitors who might be unfamiliar with ultra-long leases, which are relatively rare.

“This is the last of a series of reforms recommended by the Scottish Law Commission aimed at simplifying, updating and improving our property law.”

The 2012 Act came into force on Saturday, when ultra-long leases converted to full ownership.

Tenants have been able to opt out of the changes if they do not want ownership of the property.

The new law also covers some leases which last for shorter periods, like 99 years, but which are perpetually renewable.