Leasehold Enfranchisement Lease Extensions and related LVT applications
The term “enfranchisement” includes a range of rights that apply to holders of residential leases that exceed 21 years in length. Such leases are normal where flats are concerned, but have latterly been used on some houses.
In most cases long leases work well, but they do have one major shortcoming; as the lease shortens it becomes less valuable, which can cause difficulty when securing a mortgage or trying to arrange a sale.
Problems can also occur where the freehold landlord does not carry out their repairing obligations, or where a landlord seeks to overcharge the tenant for maintenance works.
Parliament has put in place various measures to regulate leasehold properties including the tenants right to extend their lease by an additional 90 years, or to group together to purchase the freehold interest. Tenants can also utilise powers to take over the management of the property.
There are also limits on the amounts that a landlord can spend on works without first consulting the tenants and service charges may be reviewed to ensure that they are reasonable.
Any disputes are eventually referred to a Leasehold Valuation Tribunal.
Ian Perry has been a member of the Tribunal Service for many years, and is a Valuer Chairman of Leasehold Valuation Tribunals. Accordingly we are able to offer advice, and particularly valuation advice to any landlords or tenants in relation to their wish to extend their leasehold interest, or to purchase the freehold interest collectively.
If you are a tenant considering extending your lease by an additional 90 years, or a freeholder who has received such an application from a tenant, please contact Ian Perry on: 01285 655355 for an initial discussion on a no obligation basis.