Lease extensions and leasehold enfranchisement
The lease extension and leasehold enfranchisement process not only requires an understanding of the complex regulations and procedures involved, but the ability to calculate the value of the lease extension or purchase of the freehold and negotiate with the other parties involved.
Michael Marriott Chartered Surveyors regularly acts for leaseholders and landlords. We aim to guide you through the process, offer the best advice and provide accurate market valuations. Local market knowledge and understanding of the detail of comparable transactions is key in successful lease negotiations. At Michael Marriott Chartered Surveyors we have over 40 years’ experience of market transactions and landlord and tenant consultancy.
LEASE EXTENSION
If you own a leasehold property, you have the right (subject to qualification) to extend your lease by up to 90 years on top of the remaining term. You may pay more to extend your lease if your lease term has less than 80 years left. It is advisable to extend before your lease reaches this limit. With a short lease your property may be difficult to mortgage and consequently difficult to sell.
LEASEHOLD ENFRANCHISEMENT
Or you may wish to buy the freehold (leasehold enfranchisement). Lease enfranchisement is the term used to describe the legal process of helping owners to complete a freehold purchase of their property. It can be on an individual basis (in the case of a leasehold property) or more commonly is collective enfranchisement, where multiple tenants seek to own the freehold together, each having a share.
FREEHOLDERS
Your leaseholders have the right to extend or purchase their lease. You must respond with a formal landlord’s counter-notice within the specified timescale, (normally two months), or you will be forced to grant the lease extension or sell the freehold at the price set out in the tenant’s notice.
COMMERCIAL TENANTS
Commercial tenants are usually protected by the complex provisions of the Landlord and Tenant Acts. Michael Marriott Chartered Surveyors has comprehensive knowledge of statute and case law and of the rights of landlords and tenants so that clients are fully advised both before and during negotiations.
