Ultra-long leases convert to ownership as from tomorrow

Tenants with leases over 175 years long, and with at least 100 years left to run, will become owners of their property as from tomorrow, 28 November, under a law passed in 2012.

The Long Leases (Scotland) Act 2012 converts what amounts to virtual ownership into actual ownership, affecting around 9,000 ultra-long leases in Scotland. Most last for 999 years but periods can be anything up to 1 million years long. The chosen date is Martinmas, one of the traditional term days in Scotland when rent would be collected.

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 are perpetually renewable. It completes the series of Scottish property law reforms passed since 2000. 

Minister for Community Safety and Legal Affairs, Paul Wheelhouse, said: “The changes help lenders and solicitors who might be unfamiliar with ultra-long leases, which are relatively rare. The legislation also contains provision for landlords to be properly compensated by tenants for the changes coming into force on Saturday.

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