Lease Extensions and Buying Freeholds

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Extending Leases and Buying Freeholds:

Our expertise, acquired over nearly 40 years, means that we not only provide first-class valuation advice and guidance on procedures, but can also negotiate on your behalf. Call us now and speak to one of our specialist valuers for a non obligation discussion on your particular property.

Why do leases need to be extended, or freeholds brought, by the lessees?

As the lengths of leases get shorter, the value of the property will fall, relative to similar freehold properties or those with long leases. This is especially relevant for properties that have less than 80-85 years remaining

The process of extending leases or purchasing freeholds may seem daunting, confusing and complicated. We are one of the leading and most respected practitioners in the field of Lease Extensions (individual flats), Collective Enfranchisment (blocks of flats), Freehold Purchases/Enfranchisements (houses) and Pre-emptions (Rights of First Refusal), and can take much of the worry out of what may be a stressful situation for both lessees and freeholders

In the event that agreement cannot be negotiated beteween lessee and freeholder, we will represent you at the Leasehold Valuation Tribunal. WE can also put you in touch with specialist solicitors.

Lease Extensions (Individual Flats)

Lessees have a legal right (Under the Leasehold Reform, Housing and Urban Development Act 1993) to extend the lease of their flats for an additional 90 years, with no ground rent, although they need to pay the Freeholder to take up this right. Extensions of other lengths may be agreed between freeholder and lessee, but these are purely voluntary. The process usually takes 6-18 months and the first step is to call us to get a better understanding of how the process works and the costs involved. Lessees must have owned their own flats for two years.

Once we have instructions from a flat owners, we will carry out a valuation in accordance with the legislation. We will provide a likely range of values (best and worst case scenarios) so that you can decide whether, or not, you want to proceed. This can be done either as a desktop valuation or as a full inspection and report, depending on requirements and the unexpired length of the lease.

If you decide to proceed we can advise on the best way forward and can negotiate on your behalf.

Collective Enfranchisement (Block of Flats)

Under the Leasehold Reform, Housing and Urban Development Act 1993, the long Leaseholders in a block of flats can compel the Freeholder to sell them the Freehold collectively. Most Leaseholders do this os that they can have tighter control over the management and maintenance of their block and are able to extend their own individual leases as they wish.

The main legal requirements which must be met to qualify to purchase the freehold of a block of flats is that at least 50% (minimum 2) of the lessees must participate. However there are many other requirements, so the first step is to call us for advice, to get a better understanding of how the process works and the costs involved.

Once you instruct us to go ahead, we will carry out a valuation of the freehold in accordance with the legislation and will provide you with a range of figures (the best and worst case scenarios) that would likely be determined were the matter to go before the local Leasehold Valuation Tribunal

If you decide to proceed we can advise on the best way forward and negotiate on your behalf

Freehold Purchases/Enfranchisements

Under the Leasehold Reform Act 1967 leaseholders of houses can compel the Freeholder to sell them the Freehold.

There are several legal requirements which must be met to qualify to purchase the freehold and the first step is to call us to get a better understanding of how the process works and the costs involved. We will check your eligibility, but you should be able to buy your freehold as long as you have owned the house for at least two years and the lease was originally for more than 21 years.

Once you instruct us to go ahead we will carry out a valuation of the cost of the purchase as required by the legislation

If you decide to proceed we can advise on the best way forward and negotiate on your behalf

What is Pre-emption/The Right of Refusal?

This is when the Freeholder of a building containing flats intends to sell the freehold to a third party. He usually has an obligation under the Landlord and Tenant Act 1987 to offer the freehold first to the long leaseholders of the flats. If you receive notification that this is the landlord's intention, we can advise Leaseholders of the best way to proceed.

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