residential surveying

We offer detailed Building Surveys or Homebuyer Reports for prospective purchasers of houses and flats, undertaken by our locally experienced Chartered Building Surveyors. Formal valuations are available for tax, probate, marital, lease extension and similar needs. Our multi- disciplined practice will guide you through the property ownership process.

Leasehold Enfranchisement & Extension

  • Valuation of the premium payable to extend the leasehold interest in a residential property.
  • Assessment of the enfranchisement premium where a leaseholders of a block of flats wish to collectively purchase the freehold.
  • Professional advice for leaseholder (tenant) or freeholder (lessee / landlord).

 

leaseflat

Many flats, and a few houses, are owned by a lease which will eventually expire. As the term becomes shorter the owner will see a drop in their property's value. This situation is reversible, but can be costly. Curchod & Co are experienced in valuing the premiums payable to the landlord, by the leaseholder. We can assist with negotiations on the values between landlord and tenant, and encourage a settlement, although we have made representations at Tribunal.

Legislation including the Leasehold Reform, Housing & Urban Development Act 1993 and the Commonhold and Leasehold Reform Act 2002, together with Tribunal and some Court rulings, provides a basis for the extension of leases, or a freehold purchase. Lease extensions on flats normally add 90 years to the existing unexpired lease, reducing the ground rent to zero. The flat must have been owned for at least 2 years. For enfranchisement there are many rules including that there must be at least 2 flats, at least 50% of leaseholders must participate each of whom may own no more than 2 flats no more than 25% of the floor area can be non-residential (shops and offices), the freeholder cannot be a resident of a properties with less than five flats that were converted by that freeholder.

  • Shorter leases have a lesser value and the premiums will be higher.
  • Premiums compensate the landlord for the loss of future ground rent income.
  • Premiums compensate the lessee for their deferred ownership, or their being forced to sell the freehold.
  • Leases of less than 80 years will be subject to marriage value (50% of the difference between the original short lease and the extended lease ownership market values). This can be considerable.
  • Leases of less than 70 years can be difficult to mortgage and to sell.

Contact us now for further advice or information on Leasehold Enfranchisement & Extension.

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Contact us

For further information on our residential property services please contact us on:

t: 01932 823610
e: gp@curchodandco.com