More Information: What is a Lease Extension?
In relation to the freehold purchase this could either be an individual’s right to acquire the freehold interest in their house or a collective purchase whereby a group of Leaseholders come together to acquire the freehold (known as a collective enfranchisement).
Why extend your lease?
To protect the value of the leasehold interest, the value of your property will decrease as your lease length goes down. The longer your lease, the more value you are adding to the property. If the lease has less than 85 years remaining it will put off certain buyers and also some mortgage lenders. Therefore by extending your lease you are ensuring the property is as saleable as possible. Its fundamentally good asset management. The process can be lengthy and complex so you need a trusted and experienced team of experts working for you. Olden Property Consulting is that team of experts.
Our chartered surveyors will work to ensure you receive the best return for your leasehold investment. We have over 15 years experience in this area of surveying, providing our expert service to satisfied clients across London and the South East. Call us today to discuss your case with no obligation.
Do you qualify for a Lease Extension?
Olden Property Consulting can guide you through the whole lease extension process and provide tailored advice at every stage.
To qualify for a lease extension:
• You must be the registered Leaseholder (known as a tenant) of the flat for two years before the date of the claim, but do not need to be an occupier of the flat.
• You must hold a lease that had a fixed term of more than 21 years when it was originally granted.
• Personal representatives of a deceased tenant can make a claim provided that the right is exercised within a period of two years from the date of grant of probate.
• The assignee of a tenant’s notice served by a tenant who has for the previous two years been a qualifying tenant of the flat also qualifies.
• There is no limit to the number of flats you may own in the building. You may extend any or all of them.
• You cannot be a qualifying tenant if you hold a business lease, lease from a charitable trust, a sub-lease which is in breach of terms of a superior lease. Contact us to discuss your situation in this case.
What could you receive?
• You will be entitled to acquire a new extended lease in substitution for your existing lease.
• The extended lease will be for a term expiring 90 years after the end of the current lease.
• You will reserve a peppercorn rent throughout the term.
• Broadly, the lease will otherwise be on the same terms as the existing lease.
How much will it cost?
There is no straight forward answer as the price of a lease extension will depend on the individual property and the current length and terms of the lease. To do a basic calculation, you can use a lease extension calculator, provided by bodies such as the Ministry of Housing.
Lease extensions are complex and an expert surveyor acting on your behalf can assist you to get the most fair outcome for your investment.
HOW IT WORKS:
1. At the outset of the process it is important that you instruct a properly qualified surveyor and solicitor with experience in the field of enfranchisement. Contact us now to discuss your individual case
2. If necessary, your solicitor may serve a preliminary notice to obtain information from the Landlord.
3. As your surveyor, we will inspect the flat and undertake a valuation in order to determine the premium payable.
4. Your solicitor then serves the tenants notice of claim.
5. The landlord is likely to respond with a procedural notice requiring payment of a deposit (equal to 10% of the premium being offered) and asking the tenant to deduce title.
6. The landlord will instruct his surveyor to inspect the flat and undertake a valuation in order to determine the Premium on behalf of the freeholder.
7. Within the period specified in the tenant’s notice, the landlord must serve his counter-notice. First and foremost, this must state whether or not the claim is admitted.
8. If the claim is admitted, then the counter-notice must state, amongst other things: which of the proposals contained in the tenant’s notice are acceptable or not and the landlord’s counter-proposals – particularly the premium.
9. Once the counter notice is received, we will aim to negotiate a settlement for the premium with the other side’s surveyor which is agreeable to both leaseholders and freeholder.
10. If any terms of acquisition (including the price) remain in dispute after two months following the date of the counter-notice, then either party can apply to the First-tier Tribunal (Property Chamber) for the matter in dispute to be determined.
Contact us for a for a free initial consultation about lease extension or leasehold enfranchisement. Contact Julia Prom with any leasehold enfranchisement queries on 077 0880 7362 or on firstname.lastname@example.org