LEASEHOLD EXTENSION & ENFRANCHISEMENT ADVICE
Over the past 50 years many developers, local authorities and housing associations have sold houses and apartments on long leases which have typically been for 125 or 99 years.
A lease is a right to occupy a property for a period of time. As the length of the lease reduces, its value decreases and it becomes more expensive to extend. Most leaseholders have a right to extend the term of the lease and we are able to advise upon the amount that they should pay and can provide a best and worst case scenario in order to advise upon the possible outcome of any negotiations.
On behalf of various clients, including housing associations, we provide valuation advice in respect of leasehold enfranchisement and collective enfranchisement.
We have recently undertaken several valuations where the remaining lease terms have been between fifty and eighty years.
As the term reduces it can be difficult to secure suitable finance for the property and values can decrease. Additionally as the lease term decreases, the premium to extend the lease increases each year.
Some lenders are revising their policies and will only grant a mortgage if the minimum term remaining on a lease is 85 years or more.
Several of our housing association clients have been contacted by their tenants in order to extend their lease or purchase the freehold of their property to ensure that they have sufficient time left on their lease to dispose of or re mortgage their property.
We provide valuation advice in respect of the property, a calculation of the premium due to extend the lease or purchase the freehold and any additional negotiation with the leaseholder to agree the final premium due. We have also provided valuations on a collective enfranchisement basis where a number of flats owners in a block have wished to purchase the freehold.
This is a highly specialised area of valuation, we are a national firm of Chartered Surveyors who specialise in the valuation of residential lease extension premiums.
We are members of the Association Of Leasehold Enfranchisement Practitioners (ALEP) and have undertaken many valuations for both freeholder landlords and long leasehold tenants.
Our fees are very competitive and we provide nationwide coverage.
If we can help you with your leasehold extension and provide valuation advice, please do not hesitate to contact Phil Manson on: 07767 668 372.
