Premier Chartered Surveyors London
Thursday 25th May 2017

Aston James Associates - Chartered Surveyors London

Lease Extensions- Under The 1993 and 1967 Acts

Lease Extension

You own the leasehold to your flat and want a lease extension or enfranchisement, how do you go about it? Answer: contact us.
The number of years remaining on your lease before it expires determines if and when it is worth a lease extension or, indeed, exercising your legal right to buy the freehold from your landlord. Add in the need to know the extensive legislation in this area and local market prices, and the reason to hire a local surveyor experienced in this form of valuation becomes clear.
Lease extension
Say you want to raise the value of your flat to sell it in a year or two, but your lease has more than 90 years to run. In this case, extension (normally by 90 years) will make little difference to market value.
If you are closing in on 80 years, act now and call a surveyor! Leave extending till your lease is down to 80 years or less, and you will incur higher overall costs and also have to pay your landlord an extra sum (premium) equal to 50% of the property’s “marriage value” – a share split between Landlord and Tenant in the additional value a lease extension will add to the property.
Primary statutes which govern leasehold reform are:

 

  • The Leasehold Reform, Housing and Urban Development Act 1993 – which gives the lessees of flats the collective right to acquire the freehold with other lessees of flats in the building or individual right to have a new extended lease for a term expiring 90 years beyond the existing term date of the current lease, at peppercorn rent. http://www.legislation.gov.uk/ukpga/1993/28/contents
(Please note: buyers will find it tough to get a mortgage on any lease with anything less than 65 years to run – you have been warned!) The surveyor will show you that value added or lost can be dramatic.

 

Please note simplified procedural steps regarding serving and registering initial notices in FAQ’s section.

 

Roofspace Valuation

Are you looking to purchase the roofspace from your Landlord? How much is it worth?
Perhaps you have a flat conversion situated on the second floor of a three storey building. Assuming access to the roofspace is gained from your apartment only, its valuation falls outside of RICS definition of market value.
Marriage value is therefore applicable: which is the difference between development value of the property and the apartment’s existing market value with the build costs of conversion inclusive. Aston James Associates can provide you with a roofspace valuation.
Please note a valuation example in the FAQ’s section.

 

 

For more details of our valuations service for lease extensions and freehold purchase or to arrange a consultation, please call Aston James Associates on 0208 771 5035 or email info@nullajasurveyors.co.uk

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