A long leasehold interest is a lease that usually extends beyond 50 years and where the “lease” is purchased by a one off payment (premium purchase) at the beginning of the lease, which will carry a “peppercorn” or more substantial (geared) ground rental payment (on occasion subject to incremental reviews) payable by the “long leasehold owner” to the landlord.
Long leasehold interests can be for terms up to and over 250 years (more commonly between 99 and 150 years) and up to the extreme of 999 years.
The land itself will remain in the ownership of the freeholder who receives the ground rent.
Property law treats long leasehold interests very differently in the residential and commercial worlds and legal advice is highly recommended when dealing with long lease interests and the renewal. Essentially residential occupiers can seek to purchase the freehold under certain circumstances while commercial occupiers cannot.
Long leases fall within the auspices of the Landlord and Tenant Act 1954 in respect of rights to renew and compensation.