Purchase of freeholds : collective enfranchisement
Are you a long leaseholder? Do you own a share of the freehold? Are you and your neighbours qualifying tenants? The purchase of a landlord's freehold interest is now a statutory right but there are procedures which need to be carefully followed before you begin the process. We at Taylor Willcocks will advise you fully, prepare the documentation and ensure that you meet all deadlines.
Before you go ahead you need the co-operation of a majority of the other lessees. Once you have this, we will ensure that everyone concerned signs a formal agreement. We will liaise with your valuer, consider the highest and lowest valuations and prepare the necessary formal notices. You are strongly advised before you go ahead to ensure that the necessary funding is in place. You will be liable for the freeholder's legal and valuers’ fees and we will provide a reliable estimate of the costs involved. If no agreement can be reached, an application may be made to the Leasehold Valuation Tribunal.
Extending your existing lease
Are you the owner of a flat under a long lease? How many years are left? Have you owned your property for the past two years? Or are you about to purchase a leasehold flat? A property with fewer than 80 years on its lease significantly increases the cost of a lease extension.
The right to extend your lease is provided by the 1993 Leasehold Reform Act and subsequent legislation. This gives a current owner the right to a new lease of 90 years plus the number of years remaining under the existing lease and will be rent free.
The landlord is entitled to a payment which is based on the remaining length of lease. There are savings to be made if you apply for a lease extension before the number of years drops below 80. You are recommended to appoint a valuer to prepare an estimate of the final price as there are no fixed prices for a new lease. We can help you add value to your purchase and make it as smooth as possible. Call us for a free initial discussion.
Leasehold Valuation Tribunal
In matters where the tenant and landlord cannot agree on the price or other terms Taylor Willcocks’ experienced team will be able to act for you in an application to the Leasehold Valuation Tribunal who will then make an independent decision.
Our vast experience with leasehold properties means that we are in the ideal position to advise you. Do not delay and wait until you come to sell your flat as the value of your property could be affected and a sale could be prejudiced. Remember the longer you leave it the higher the cost may be.
For leasehold enfranchisement and lease extension enquiries, please contact Sarah Addison on 020 8642 8142 or sarah.addison@taylorwillcocks-cheam.co.uk.