Leasehold Extensions Worthing
Specialists in lease extensions & freehold purchases.
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LEASE EXTENSIONS WORTHING
Do you qualify?
The 1993 Leasehold Reform Housing and Urban Development Act (as amended by the 1996 Housing Act and the Commonhold and Leasehold Reform Act 2002) gives a lessee the right to extend the lease, so long as the lessee has owned the flat for two years. The Act specifies that the extension to the lease is for 90 years added to the existing unexpired term and ground rent is expunged.
What is the basis of the valuation?
This forms three parts:
Diminution in the value of the Freeholder’s Interest : This is what the freeholder is losing – essentially it is the capitalisation of the ground rent and the reversion.
Marriage value : This is the value created by merging the existing leasehold interest with the new extended leasehold interest.
Compensation : Compensation is payable to the freeholder if he sustains loss to any other property owned from the granting of the new lease. This category is extremely rare.
What is the procedure under the legislation?
Your solicitor will serve a Section 42 Initial Notice served on the freeholder stating what the flat comprises, details of the lease and the price offered for the premium.
Within two months the freeholder is required to serve a Counter Notice acknowledging the lessee’s right to a lease extension. Normally the freeholder, in his Counter Notice, will not agree to the figure that has been offered so negotiations then take place.
Hopefully a price can be agreed, but if not (which is rare), the lessee has six months from the date of the Counter-notice within which they can apply to the First Tier Tribunal (Property Chamber) who will determine the price to be paid.
What are the benefits?
Flats with particularly short leases are very difficult to sell unless it is to cash buyers who will want a significant discount on the price. Once an extended lease is in place you will have a long lease and zero ground rent, giving an increase in value to the property and making it saleable at the full market value.
Will I be able to sell my flat with a low lease?
Yes, you can. However, it will likely narrow down the market to cash purchasers who will want a significant discount on the price of the flat.
Once I have extended my lease will I get full value for my flat?
Yes, you will. You will open the sale to the full market and any prospective purchasers who need to obtain mortgages, will have no issue.
Have you checked how many years are remaining on your lease recently?
It is often left in a file when the flat is purchased. A quick check will show what term is remaining.
Are you thinking of selling your flat and have noticed the lease length is low?
The earlier the issue is picked up the better. But it is never too late do something about it if it is low.
Have you been left a property by a family member and the lease length is low?
The right to a lease extension often passes to family members so you can extend the lease.
Have you also considered purchasing your freehold with your other leaseholders?
There may be others in your block that have a similar idea, so it is worth speaking to others. If you cannot purchase your freehold, you could go ahead as a group and extend your leases.
We offer fixed price valuation fees depending on the location of the property and the amount of work that is involved. We often provide reduced fees if the matter is straightforward and does not involve inspecting the property. We are also able to offer discount where we are carrying out more than one valuation at a time.
We charge a separate fixed negotiation fee for negotiating terms with the freeholder or leaseholder. We are also able to offer discount where we are carrying out more than one negotiation at a time.
If you would like our support to get the most out of your property please get in touch.
Mainstone Road Hove BN3 5HL