SMITH & KNIGHT

Property Experts

LEASEHOLD VALUATION

LEASEHOLD ENFRANCHISEMENT

Your rights as a leaseholder are set out in the following legislation: The Leaseholder Reform, Housing and Urban Development Act 1993, amended by the Commonhold and Leasehold Reform Act 2002.

In addition to extending the lease, a group of leaseholders has the right to purchase the freehold of their property as long as certain conditions are met.

Firstly the building must contain at least 2 flats, the original lease has to be greater than 21 years and at least half the leaseholders must participate. Purchase is not possible if the freeholder lives in the building which was originally converted by the freeholder and if there are less than 5 flats. Please note that the leaseholder does not have to be the resident and that up to 25% of the building floor area may be put to non-residential use.

The cost of buying the freehold is based on an assessment made in three parts: capitalised value of the ground rent, the value of the freeholder’s reversion at the end of the lease and half the marriage value.

Marriage value is the increase in value when the freehold and leasehold interests are combined or ‘married’ together.

To go about buying the freehold, leaseholders form a ‘right to enfranchise’ company and a solicitor serves notice on the freeholder making a monetary offer for the freehold.The freeholder either accepts or serves a counter notice giving his asking price. The two parties then negotiate the price.

If this fails then either side can apply to the Leasehold Valuation Tribunal who will determine a price. Here at Smith & Knight Property Services Limited we have been successfully providing an honest and reliable service since our establishment.

We can assess the price following an inspection of the property and lease documents. We can then negotiate a price with the freeholders on your behalf. Smith & Knight have considerable experience in representing leaseholders at tribunal. Please contact us to discuss your requirements.

LEASE EXTENSIONS

Your rights as a leaseholder are set out in the following legislation: The Leaseholder Reform, Housing and Urban Development Act 1993, amended by the Commonhold and Leasehold Reform Act 2002.

This valuation informs the leaseholder of the figure they would be expected to pay to extend the lease on their property by any given number of years.

You have the right to extend your lease for 90 years at a peppercorn ground rent, providing you have owned the flat for at least 2 years and the original term of the lease is greater than 21 years.

You do not have to be a resident in the flat. The cost of extending your lease is based on an assessment made in three parts: capitalised value of the ground rent, the value of the freeholder reversion at the end of the lease and half of the marriage value.

Marriage value is the increase in value when the leaseholder and freeholder interests are combined or ‘married’ together.

Please note that marriage value is not payable if your lease has 80 years or more unexpired. Cost savings can be made if you act now. Please call us for more details.

To go about extending the lease, a solicitor serves notice on the freeholder making a monetary offer.

The freeholder either accepts or serves a counter notice giving his asking price.Then the two parties negotiate a price. If this fails either side can apply to the Leasehold Valuation Tribunal who will determine a price.

Smith & Knight Property Services Limited London have considerable experience in the valuation, negotiation and court representation for Lease Extensions.