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Call us on: 020 3137 7250
If you own a leasehold flat, the value of your investment diminishes with the passing of time. At the end of your lease, ownership of your flat reverts to the owner of the freehold so, at that point, the value of your leasehold interest will be zero.
Fortunately, Acts of Parliament have bestowed certain rights on leaseholders that, in most cases, allow them to purchase extensions to their leases.
We can help you by calculating how much your freeholder can reasonably expect to be paid for granting such an increase. Then, if required, we can negotiate with the freeholder on your behalf.
Under the terms of the 1993 Leasehold Reform, Housing and Urban Development Act, the premium the freeholder is entitled to be paid for granting a lease extension is comprised of either two or three elements:
1) Loss of ground rent income. (The legislation provides for the new lease to be at a "peppercorn" (i.e. zero) ground rent.
2) The monetary loss to the freeholder of foregoing the right to recover possession of the property for a further period of ninety years.
3) 50% of the "Marriage Value" (i.e. the difference between the value of the flat with [say] 65 years remaining, and its value with 99+ years remaining). Marriage Value is only payable if there are fewer than 80 years remaining on the lease.
We will need to establish:
1) Whether or not you are a Qualifying Tenant? (A lease extension may still be possible, even if you are not.)
2) How much your lease extension is likely to cost?
3) How we can secure the best outcome for you?
Whether or not you qualify for a statutory lease extension under the terms of the 1993 Leasehold Reform, Housing and Urban Development Act, we suggest the best starting point is for us to make an informal approach to your Freeholder. Even before such an approach is made, however, you will need an accurate assessment of the premium that is likely to be required by your Freeholder for granting your lease extension. We will carry out a Lease Extension Valuation and then, if required, negotiate with your Landlord to try and secure the best possible deal for you.
We specialise in advising Leaseholders on the likely Premium (price) they will have to pay for extending their lease and then negotiating terms with their Freeholder.
We also advise Freeholders as to the likely value of their Ground Rent investment(s) and negotiate lease extensions with their Tenants.
NB. Don't wait until you have a buyer for your property!
Remember that most mortgage lenders will not lend where there is a term of less than 70 years remaining on a lease.
We will help you:
1) Add Value to your property
2) Appeal to more buyers when you come to sell
3) Save money
We understand this business. We have been involved with leasehold enfranchisement for over thirty years, so you can be completely confident that you are in safe hands. And, of course, we carry Professional Indemnity Insurance.
Some of our competitors will simply serve notice on your Freeholder and then apply to the Leasehold Valuation Tribunal on your behalf for a determination of the premium to be paid. This will involve you in costs that may be completely unnecessary.
Lease-Increase is the trading name of Awfully Ltd., whose registered address is Midway House, Staverton Technology Park, Cheltenham, GL51 6TQ