Lease Extension Flats Specialists London | Richard John Clarke Chartered Surveyors



Home Page Leasehold Extension Rent Reviews & Lease Renewals Compulsory Purchase Other Services Chartered Surveyors London About Us Contact Us	Lease Extension If you require a Lease Extension on a flat, Richard John Clarke Chartered Surveyors are specialists in this field. It may be more than one flat in a block that requires a lease extension from the freeholder - or you may be looking to purchase the freehold for the property. All of these situations will benefit from our many years of experience within this field, as we will be able to advise you on assessments of the kind of costs you should be expected to pay the freeholder for the lease extension. Our experience and negotiating skills can save you from paying more than is needed to extend your leasehold. Leasehold Extension - The Background The 1967 Leasehold Reform Act was a major reform in Leasehold Laws which gave leaseholders of a house the right to acquire either an extension (of 50 years) or the Freehold of the house. Two other requirements effected this Act - the lease needed to be termed as “low rent” and with a “long tenancy” for these rights to apply. In 1993 the Leasehold Reform, Housing and Urban Development Act extended these rights to include lease extensions for flats and the right to purchase the freehold of a flat for qualifying tenants. Obtaining the lease extension for a flat within a block of flats is explained in more detail below. A major advance in this Act was that in a block of flats it gave the tenants the right to acquire the Freehold of their building - this is often referred to as collective enfranchisement. Richard John Clarke Chartered Surveyors can offer Leaseholders and Freeholders a wealth of experience when it comes to advice on their rights and obligations under the above legislation. Not only do we offer specialist advice on Lease Extensions and Freehold Purchase, but also offer our services at a very competitive price and in a timely manner. Lease Extension - Flats This is a more detailed overview of The Leasehold Reform Act. The Leasehold Reform, Housing and Urban Development Act 1993 (as amended) gives most leaseholders the right to receive an additional term of 90 years added to the existing term, rent free. Qualifying Leaseholder Lease needs to have been a lease for more than 21 years Ownership of flats for more than 2 years Excluded buildings include:- Properties with a Cathedral Precinct National Trust Property Crown Property Shared ownership where the leaseholds share is less than 100% Freehold Purchase – Collective Enfranchisement of Flats The 1993 Leasehold Reform Act (as amended) gives the right for the qualifying majority of leaseholders acting together to acquire the Freehold. Qualifying Leaseholders :- Leases need to have been granted for more than 21 years Need to own at lease 50% of the flats in the building In addition the building most have:- Not more than 25% of the internal floor area used for non-residential purposes At lease 2/3 of the flats must be let to “qualified leaseholders” Excluded buildings include:- Properties with a Cathedral Precinct National Trust Property Crown Property Shared ownership where the leaseholds share is less than 100% Cost of Lease Extension / Freehold Purchase – Premium The Premium is the amount of compensation that the Leasehold pays to the Freeholder for either granting the extended lease at a nil ground rent or for transferring the Freehold to the Collective Leaseholders. This figure is calculated by taking a number of factors into consideration:- Market value of the flat is extended Length of lease Rent payable including the rent increases over the term Marriage Value (only taken into account if lease has less than 80 years unexpired) Lessees should also bear in mind that they are responsible for paying the “reasonable costs” of the Freeholder’s Professional Fees i.e. Solicitors / Surveyors, as well as their own Professional Fees. Richard John Clarke will also provide the following services: Negotiate with the other sides’ Valuer Prepare reports for the Leasehold Valuation Tribunal Attend hearings at the Leasehold Valuation Tribunal In line with instructions given by the RICS, the fees for these services are based on an hourly rate. Please ring to discuss the rate as it varies depending on the complicity of each case, with our most experienced staff dealing with the more complex cases. Association of Leasehold Enfranchisement Practitioners At Richard John Clarke Chartered Surveyors, we are committed to our Continued Professional Development, therefore, we take an active part and are also members of The Association of Leasehold Enfranchisement Practitioners. ALEP exists to ensure that valuers, solicitors, intermediaries and others involved in Leasehold Enfranchisement adhered to an agreed level of conduct and service. Leasehold Enfranchisement Advice London Our office is based in London, so if you wish to meet our Leasehold Enfranchisement Expert, you can arrange an appointment at our London office. We can assist and advise on all Leasehold enquiries from throughout the UK. For a free, no obligation, ten minute consultation, please call our Leasehold Expert on 020 7499 8043 or email info@richardjohnclarke.com. Also, The Leasehold Advisory Service website may be of assistance. www.lease-advice.org If you require assistance on your Lease Extension or Freehold transactions on property, call us now on 020 7499 8043 or arrange an appointment to visit our office. Premier Estimated Valuation Service - Lease Extension or Freehold Purchase Richard John Clarke offers a Premier Estimated Valuation Service, the aim of which is to give an estimate for the cost of extending the Lease Extension or Freehold acquisition. Prices start from £200 plus VAT. Please call 020 7499 8043 to discuss. This is only suitable where the client is just interested in a “ball park” figure to enable them to decide whether to proceed any further. Inspected Valuation Richard John Clarke offers an Inspected Valuation Service which, provides a more accurate Premium when it comes to calculating the correct costs involved with extending a lease or buying the freehold of a property. This in our view is essential prior to the service of any notices. Richard John Clarke will:- Inspect the property Carry out research into comparable properties Discuss values with local Estate Agents Provide a valuation of the extended lease / freehold Research rent review provision of the lease Provide 2 copies of our report setting out the Premium Prices start from £500 plus VAT. Please call 020 7499 8043 to discuss. Recent Lease Extension or Freehold Transactions & Testimonials Lease Extension Advice Towards Selling Flat Flat, Cornwall Gardens, Kensington and Chelsea, London, SW7 Property was worth in the region of £1.5 million but with only 25 years left on the lease this was reduced to £900,000. Once our client received our valuation and explanation she managed to sell the property for the full asking price after struggling to sell it for a number of years. Customer comments on resolving lease issue: “I made it but I am shattered after a number of nightmare years! I always thought your words were wholly correct – no estate agents speak. You were spot on - and I sold the flat...... I just wanted to thank you for your help and kindness” Freehold Purchase on Flats Two flats in Downsfield Road, Walthamstow, East London, E17 We provided valuations for the purchase of the Freehold at £17,500, which the Landlord accepted as being correct. Our clients successfully completed the purchase. Our questionnaire provided the following results: Rating: 1 Excellent - 4 Poor Ground Floor Flat Freehold Purchase Assessment achieved: 2 Good/Very Good Customer Comments following successful Freehold Purchase: "Not knowing much about these things this seemed a fairly straight-forward valuation. The Gentleman who did it was very pleasant and chatty. I was very happy with the subsequent outcome." - May 2010 First Floor Flat Freehold Purchase Assessment achieved: 2 Good/Very Good Customer Comments following successful Purchase of the Freehold: "We were very pleased with the service we received. Thank you." – June 2010 Freehold Purchase on Flats Two flats in Stanley Road, South Woodford, East London, E18 This transaction was complicated because the Freeholder could not be traced. We therefore had to present our Valuation to the Leasehold Valuation Tribunal. The Tribunal accepted our Valuation and our client successfully purchased the freehold at £22,000. Our questionnaire provided the following results: Rating: 1 Excellent - 4 Poor Assessment achieved: 1 Customers Comments on Purchasing Freehold for Flats: "The Surveyor that arranged my “assessment” was really helpful and willing to answer any questions about the survey and some other issues that I had." Lease Extension Flat Dryden Close, Hainault, Essex, IG6 We provided a Valuation to extend the lease at between £6,250 and £8,500. The Landlord served a Counter Notice at £14,150. We successfully negotiated a premium at less than £8,000 Lease Extension on Property Marlborough Road, South Woodford E18 We provided a valuation to extend the lease at £12,000. A Counter Notice was served by the Freehold at £15,750. We managed to conclude negotiations with a premium of just £9,500! (£2,500 less than Section 42 Notice). These are just some of the samples of Lease Extensions and Freehold Purchases that we have worked on recently - and our advice has helped our customers to achieve a successful agreement, often saving them a large amount of money in the process. If you require assistance on your Lease Extension or Freehold Purchase of a property, call us now on 020 7499 8043. If you are looking for a Lease Extension for a Flat, speak to our specialist in this field, Richard Murphy Dip. Surv, MRICS. Block of Flats Lease Extension Many London residents live in flats and own the flat leasehold. As there are time limits within a leasehold agreement, the option of extending the leasehold or buying the freehold will eventually arise - it is usually advisable not to let your lease run to low, due to the increase in cost when purchasing or extending is dramatically effected by the length left in the lease. If you own a flat within a block of flats, there are several other issues involved which make the transaction of a lease extension or buying the freehold more complicated. If you are in this position and you are considering purchasing the freehold or applying for a lease extension, speak to us for some straight forward advice on the best way to arrange this - you could save yourself a lot of money, time and effort, by discussing with us the basics of a flat lease extension or freehold purchase within a block of flats. We offer a free ten minute consultation - just call on 020 7499 8043.
Richard John Clarke - Chartered Surveyors info@richardjohnclarke.com