Your rights as a leaseholder are set out in the following legislation: The Leaseholder Reform, Housing and Urban Development Act 1993, amended by the Commonhold and Leasehold Reform Act 2002.
This valuation informs the leaseholder of the figure they would be expected to pay to extend the lease on their property by any given number of years.You have the right to extend your lease for 90 years at a peppercorn ground rent, providing you have owned the flat for at least 2 years and the original term of the lease is greater than 21 years.
You do not have to be a resident in the flat. The cost of extending your lease is based on an assessment made in three parts: capitalised value of the ground rent, the value of the freeholder reversion at the end of the lease and half of the marriage value.
Marriage value is the increase in value when the leaseholder and freeholder interests are combined or ‘married’ together.
Please note that marriage value is not payable if your lease has 80 years or more unexpired. Cost savings can be made if you act now. Please call us for more details.
To go about extending the lease, a solicitor serves notice on the freeholder making a monetary offer. The freeholder either accepts or serves a counter notice giving his asking price.Then the two parties negotiate a price. If this fails either side can apply to the Leasehold Valuation Tribunal who will determine a price.
Albright Surveyors Limited London have considerable experience in the valuation, negotiation and court representation for Lease Extensions.
Please contact us at Albright Surveyors Limited London to discuss your Lease Extension requirements.