[2007] EWCA Civ 245, 21 March 2007. The appellant company appealed against an order that it transfer to the respondent tenants the term granted by a lease of a property pursuant to the Landlord and Tenant Act 1987, and the tenants cross-appealed against an order that the transfer was subject to a sub-underlease. The appellant company had held the property, which it had developed into flats and houses, under a 1973 lease from Thames Water. The tenants were qualifying tenants within the meaning of the 1987 Act and any disposal of the appellant company's interest in the property required the tenants to be offered the first right of refusal. In 2000 the freehold reversion was transferred by Thames Water to another company, and this company agreed with the appellant company that it would accept the surrender of the 1973 lease and grant appellant company a new lease. "Held": the court would not order the transfer of a lease from a landlord to qualifying tenants under the collective enfranchisement provisions in the Landlord and Tenant Act 1987 in circumstances where the landlord had entered into an agreement to surrender a headlease in return for a grant of a longer term and was therefore enlarging its headleasehold interest rather than disposing of it.