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RESIDENTIAL LEASES – Leasehold Extensions and Enfranchisement

We are experts in lease extensions and enfranchisement and act for freehold owners and leaseholders in this specialist area of valuation.

Residential property, subject to a leasehold interest, can be a complicated area of property law and valuation. A leasehold interest is a lease that is granted by the freehold owner to a leaseholder giving them the right to occupy residential premises for a period of time. At the outset, a premium is typically paid by the leaseholder in line with the market value of the property and a ground rent is often paid throughout the term. As time passes and the number of years unexpired reduces sufficiently, it can impact the value of the property (negatively) and create difficulties when a leaseholder wishes to sell or re-mortgage the property.

 

  • Leaseholders

    The Leasehold Reform Housing and Urban Development Act 1993 gives leaseholders the right to extend the lease of a residential property by 90 years. Leases with fewer than 95 years remaining warrant particular attention and should be extended at the earliest time, to minimise costs and protect the value of the leasehold interest.

    The Leasehold Advisory Service provides advice on the rights of Tenants, the processes involved and a handy calculator to enable you to assess the approximate premium that may be payable on the grant of an extension. The information does not however account for the individual circumstances and we can assist you to understand your position and the tactical methods that may be appropriate.

    Please contact Steven Hall for an informal discussion on how Pearce & Co can assist.

  • Freeholders

    If you own a freehold property subject to a leasehold interest and have received a request from the leaseholder to extend the lease, we can advise you of the most appropriate way to respond.

    Please contact Steven Hall for an informal discussion on how Pearce & Co can assist.

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