Leasehold Reform- Acquisitions & Extensions
Leasehold Reform- Lease Extensions & Acquisitions
When buying or owning a leasehold property it is important to be aware of the time left on the lease.
If your lease is around 81/82 years, it would be advised that you would need to apply for a lease extension because the price is much higher once it is below 80 years.
Rennie & Partners specialise in advising clients involved with claims made for residential freehold interests and residential lease extensions as set out in the Legislation dating from 1967-2002.
We have a 100% success rate in obtaining a freehold or lease extension for our clients, having represented our clients in the First Tier Tribunal (formerly Leasehold Valuation Tribunal) and the Upper Tribunal (Lands Chamber).
There are three types of leasehold enfranchisement:
1. House owners who only have a lease of their house can acquire the freehold.
2. Flat owners can acquire a 90 year lease extension to the existing lease of their flat.
3. Flat owners living in blocks of flats can get together and if they have a majority they can buy the freehold.
Lease extensions under the Leasehold Reform, Housing and Urban Development Act 1993 allows most leaseholders to extend the lease by 90 years.
In order to do this:
- You must have owned the property for two years
It would be advisable to instruct a surveyor to carry out a leasehold valuation. The surveyor will be able to calculate the cost of extending the lease and advise on the price to be offered in the notice served on the freeholder.
The lease is often extended during a flat sale to improve the saleability of the property. On these occasions, the vendor will need to have a leasehold valuation undertaken. The vendor's solicitor must serve a statutory notice on the landlord exercising the flat owners right to extend the lease and will offer a price based on the leasehold valuation. This will enable the buyer to take over the application so they can buy the extension after completion, rather than having to wait the prescribed two years.
Acquiring the Freehold
Rennie & Partners assist either house owners in acquiring the freehold of their property or flat owners (if they have a majority) to buy the freehold together and set up a company. The company in which they are all shareholders normally grants 999 year leases to the flat owners who participated.
We have extensive experience in providing specialist valuations required under the Legislation, and negotiating the price for freehold acquisitions or 90 year lease extensions.
Please call us for a leasehold valuation quotation or to find out more about how we can help you with this service.
Often Rennie & Partners have acquired block management when we have either helped our clients to get together and buy the freehold of their block, or when we have enabled them to extend their lease.Please read here for a case study.