The Leasehold Reform, Housing and Urban Development Act 1993 (as amended in 2002) gives leaseholders of flats, subject to some qualifying conditions, the right to extend their leases by a further 90 years at no ground rent or, collectively with other leaseholders, the right to purchase the freehold.
The Enfranchisement Price
The price payable by leaseholders basically is firstly the freeholder’s loss arising from extending the lease or selling the freehold and secondly, for leases with less than 80 years unexpired, 50% of ‘marriage value’. Marriage value is taken as the increase in value arising from the marrying of the freehold and leasehold interests.
We would be pleased to take instructions from both leaseholders and freeholders to provide initial valuations for the price which should be paid for a lease extension or freehold purchase. Our valuation would be based on our experience in the residential property market, recent comparable transactions and an analysis of Tribunal decisions. Advice would be provided on commencing negotiations and the serving of relevant Notices.
Depending on requirements, we would be pleased to take further instructions to subsequently act in negotiations. In the majority of cases satisfactory settlements can be reached without recourse to the Leasehold Valuation Tribunal.
Should a satisfactory settlement not be reached by negotiation we would be able to present an expert’s witness report to the Leasehold Valuation Tribunal.