Valuation for Lease Extension
For leasehold flat owners many mortgage providers and indeed purchasers of flats now require that the existing lease is extended.
While this extension can be negotiated direct with the landlords or freeholders, the Leasehold Reform, Housing and Urban Development Act 1993, as amended by the Housing Act 1996 and the Commonhold and Leasehold Reform Act 2002 (the Act) gives leaseholders who have owned the flat for two years or more, a framework by which they can compel landlords to grant a new lease having a term 90 years longer than their existing unexpired term at a peppercorn or nil ground rent.
In return the landlord has to be compensated by payment of a premium. We can advise you in respect of the level of premium and general procedures.
Where there are a number of flats in a building, provided that certain qualifying criteria are met, the leaseholders can join together to acquire the freehold of the building, using the Act.
Not all leaseholders need to participate, and enfranchisement need not necessarily be the best way forward in all cases as individual lease extensions may be preferable.
This can be a complicated process and you can rely upon us to give you expert advice about all the options to be considered in your particular situation.