Residential lease extensions – Falling between the cracks

Owners of long leasehold interests in residential property have a legal right to extend their lease under the Leasehold Reform, Housing and Urban Development Act 1993 in respect of flats, or the Leasehold Reform Act 1967 in respect of houses. The former is the most common in light of leasehold being the preferred legal medium for appropriately transacting flats within a block. Lease enfranchisement is becoming very popular in the current market as many leases granted upon blocks of flats developed in the 1970s and 80s now have comparatively short terms left, which can become a problem when it comes to obtaining a mortgage for such premises. Statute provides for a 90 year extension to the originally granted term and also reducing the ground rent to a peppercorn. These factors improve the value and marketability of flats following lease extension. Whilst strictly residential in nature, the complexity of the legal and valuation framework calls for specialist advice often beyond the scope of most traditional conveyancing solicitors and estate agents. Similarly, this niche sector is generally neglected by the respective commercial property departments within firms of solicitors and chartered surveyors. At Underwoods we have a broad ranging and experienced Valuation department whom have developed expertise in the valuation and negotiation of lease extension premiums, which are payable by the leaseholder for the benefit of obtaining the same, compensating the landlord for the loss in value to their interest in the land. We can provide an all encompassing service from initial valuation through to completion of negotiations, or simply an initial appraisal for determining the appropriate level of value to be quoted in the legal notice.

Robert Keeves

01604 774143

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Residential lease extensions – Falling between the cracks

Owners of long leasehold interests in residential property have a legal right to extend their lease under the Leasehold Reform, Housing and Urban Development Act 1993 in respect of flats, or the Leasehold Reform Act 1967 in respect of houses. The former is the most common in light of leasehold being the preferred legal medium […]