If you own a flat or other type of leasehold property, then Henry Adams can help you through the process of extending the lease.
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To own a freehold means you own the soil beneath your feet, the sky above and everything in-between. So when someone buys a flat, they generally acquire a leasehold interest for a limited number of years, whereas someone else will own the freehold of the entire building.
There is legislation that gives leaseholders a right to extend their leases, giving them peace-of-mind and making the property more valuable to sell. This process is called “Enfranchisement”.
If someone has owned a leasehold flat for more than two years, then they have a legal right to extend the lease by 90 years on top of the existing term. The cost of this enfranchisement varies according to the time left on the lease but will be cheaper the sooner they act.
To extend a lease at the lowest possible price, leaseholders are encouraged to start the process when the terms left on their lease drops below 85 years. When the lease term drops below 80 years, the price starts to escalate because the calculation starts to include “Marriage Value” for the freeholder. People don’t have to wait until they sell the property to enfranchise – they can do it at anytime.
We have a guide with further information and examples of the cost involved. Please email email@example.com to ask for a free copy.
Freeholders might be approached about a lease extension, either formally (with a Section 42 Notice) or informally. Henry Adams can assist in the negotiation and calculate valuation figures that can be used in replies or counter-notices.
Alternatively, there is process whereby leaseholders can collectively purchase the freehold, known as “Collective Enfranchisement”. We can assist with this too.
Henry Adam’s team of Chartered Surveyors have experience in acting for both freeholders and leaseholders. We have excellent experience in understanding local property values and our RICS Residential can guide you through the legal and valuation process.
Our RICS qualified surveyors can support you with:
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