Enfranchisement & Lease Extensions - Professional Services - Drew Pearce Estate Agents and Chartered Surveyors
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ENFRANCHISEMENT & LEASE EXTENSIONS
An owner of a leasehold interest in a house or flat may have a right to extend the term of the lease or to acquire the freehold.
The Leasehold Reform Act 1967 gave leaseholders the right to buy (enfranchise) the freehold of the property or in some cases to extend the lease subject to satisfying the qualification rules.
In order to establish the price to be paid two bases of valuation are provided for and there are statutory rules for determining which is to apply.
The 1993 Leasehold Reform, Housing and Urban Development Act (as amended) provides a right for the grant of a new lease for a term of 90 years, plus the present unexpired term - all at a peppercorn rent.
Additionally there are provisions which enable leasehold flat owners in a building containing a minimum of 2 flats and where no more than 25% of the internal floor area is in non residential use to collectively enfranchise (enforce the sale of the freehold).
In both cases there are qualification rules which have to be satisfied and a statutory basis of valuation applies.
At Drew Pearce we have experience in providing valuation advice in connection with the statutory procedures regarding the above, and in cases which are outside the statutory provisions (e.g. National Trust property) where the landlord and leaseholder have, for example, agreed to extend the lease.
We are, therefore, well placed to work with landlords or leaseholders and their solicitors in this interesting area of residential property law.