Lease Extension
Whether you are a freeholder or a leaseholder we can advise on the premiums payable. Owners of long leasehold flats now have the right, subject to certain qualifications under the Leasehold Reform Housing and Urban Development Act 1993, the Leasehold and Commonhold Reform Act 2002, as amended by the Leasehold Reform Act 2014, to extend their lease.
If you qualify under the current legislation then you have an absolute right to serve a Statutory Notice under section 42 of the Act in order to extend your lease. You would be entitled to a 90 year extension on top of your remaining term and the ground rent would be extinguished by payment of the premium.
It is important to engage the services of a specialist solicitor to deal with the serving of the Notice and to advise on the new lease terms. We can advise on the right solicitor for you if necessary. Together, we will ensure that the matter proceeds as swiftly and painlessly as possible in order to achieve the right result whether you are a freeholder or a leaseholder
You will be kept fully informed throughout the process and no decisions will be made without your authority.
In order to carry out the valuation an inspection of the property will be made and we will need to have sight of the current lease. The premium will then be calculated and a report setting out the premium will be sent to you for your consideration.We can then send this to your solicitor so they can serve the relevant Notice and start the process.
Normally once the Notice has been served on the freeholder has two months in order to serve a Counter Notice and then negotiations can commence for a specified period prior to the matter being referred to the First Tier Tribunal for determination if agreement can be reached.
We are able to advise either freeholders or leaseholders in this respect, in the London area. The same process applies in each case.
Freehold Purchase
The Leasehold Reform Housing and Urban Development 1993 gives leasehold flat owners specific rights.
The right to apply for a lease extension as an individual
The right to join together with other flat owners to purchase the freehold of the whole block
To be part of buying the freehold, 50% of the flatowners within your block will need to participate. For example, in a block of 12 flats six of those would be required to proceed. The matter can proceed whether the other six want to go ahead or not.
If you own a flat in a block but do not live in it, for example, you may rent it out or it is your holiday home, you are still able to be part of the process. You do not need to have owned your property for any specific period of time, you just need to be the registered owner at the Land Registry.
What will it cost you?
The amount of money you pay is calculated by a formula which is contained in the 1993 Act itself. In order to find out what this is likely to be, we will need to inspect the property and the flats within the building and have sight of the lease relevant to all the flats. A calculation can then be carried out in accordance with the legislation to determine the amount payable.
Once the statutory process has been completed you will have a share in the company that owns the freehold you will also have an ability to extend the length of the lease with a peppercorn ground rent.
A nominee management company will normally be set up by your solicitor advising you in this respect and each participator in the freehold acquisition will own one share in the new company. Those who do not participate can participate at any time in the future by purchasing their share in the company. At that time a formal valuation will be required.
An Initial Notice under section 13 of the Act is prepared and served on the freeholder and any intermediate landlord. The Notice contains certain required statutory information but most importantly the offer figure that has been calculated.
Once the freeholder receives the Initial Notice he can ask the flatowners to prove they own their property in the names that are specified in the Initial Notice.
The freeholder will also instruct a valuer for the purpose of inspecting and valuing the premises.
The freeholder will prepare a Counter Notice in response to the Initial Notice. Negotiations can then commence between the two valuers in order to bring the matter to a conclusion and hopefully prior to any Tribunal hearings.
We are able to advise on this in the London area.
Please feel free to email any questions that you may have or telephone for a more immediate response.
Mediation
Simon Dancer is a skilled mediator and arbitrator and has acted as an expert witness in court on numerous occasions throughout his career. He has been appointed by the courts as a single joint expert and is highly regarded in the area of dispute resolution
Mediation is an effective way of resolving a dispute in a calm, respectful, constructive and co-operative manner. A trained mediator works as a neutral third party to provide a framework for constructive communication so that you can work out solutions to the issues that need to be resolved.
Ostensibly, the mediator facilitates the bringing together of both parties in the way that a court hearing cannot do.
The mediator can settle almost any dispute between two parties by skilfully working with each side helping them to understand each other's grievances and allowing them both to come to an amicable resolution. The process is a structured one that makes room for expression of feeling whilst retaining a clear focus on the decision-making tasks that need to be accomplished. The mediator will guide you through the settlement negotiations in a way which minimises the financial and emotional burden and leaves both sides free to move on with their lives once the dispute has been settled.