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Leasehold Enfranchisement
Since Leasehold Reform Act 1967 certain leaseholders of HOUSES had the right to acquire the Freehold or a 50 year extension to the lease. It only applied on leases where there was a “low rent” and on a “long tenancy” (term granted for more than 21 years).These rights were greatly extended to include FLATS by the radical Leasehold Reform, Housing and Urban Development Act 1993. The 1993 Act introduced the right for qualifying tenants of flats to have the term of their leases extended and the right for the tenants to acquire the Freehold of their building (collective enfranchisement).
At Richard John Clarke we aim to provide advice to both Leaseholders and Freeholders on their rights and obligations under the above legislation. We offer our clients the best advice, at a competitive price, in a timely manner.
Lease Extension - Flats
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
- 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
- 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”
- 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)
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.
If you require assistance on your Leasehold Enfranchisement or Freehold transactions on property, call us now on (020) 8505-2065 or arrange an appointment to visit our office at,
Richard John Clarke, Chartered Surveyors, Unit 1, The Galleria, 180-182 George Lane, South Woodford, London, E18 1AYPremier Estimated Valuation Service
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 and or Freehold acquisition.Prices start from £200 plus VAT. Please call 020 8505 2065 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.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
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) 8505-2065 or email info@richardjohnclarke.com.
Also, The Leasehold Advisory Service website may be of assistance. www.lease-advice.org
Block of Flats
Due to London's large population, many London residents live in flats - either renting or owning the flat leasehold. Eventually, the option of purchasing the leasehold or freehold will arise and this can be particularly complicated if you are one flat within a block of flats. 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 a lot of money, time and effort, by discussing with us the basics of leasehold enfranchisement.Recent Leasehold Enfranchisement or Freehold Transactions
Leasehold Enfranchisement for Flat
Flat in 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 - a real saving for the customer by coming through our service and benefiting from our many years of Leasehold Enfranchisement experience.
Leasehold Enfranchisement Advice on Flat Sale
Flat being sold, 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."
Leasehold Enfranchisement 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). Another success from using our vast knowledge in the Leasehold field.
These are just some of the samples of Leasehold Enfranchisement 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 Leasehold Enfranchisement or Freehold transactions property, call us now on (020) 8505-2065.
info@richardjohnclarke.com
| 29 New Bond Street London W1S 2RL Tel: (020) 7499-8043 Fax: (020) 7307-0849 |
Unit 1, The Galleria 180-182 George Lane South Woodford London E18 1AY Tel: (020) 8505-2065 Fax: (020) 8989-6979 |
