The Leasehold Reform, Housing and Urban Development Act 1993 (as amended) entitles a Leaseholder to purchase an extension of 90 years to their existing lease term at a nil ground rent or for a group of Leaseholders to collectively acquire the freehold of their building.
Both processes start with a Notice being served by a Leaseholder’s solicitor on the Freeholder which includes a monetary offer for a lease extension or to purchase the freehold. If the Freeholder does not agree to the offer, a Counter Notice is served stating the amount it requires. This has to be served prior to a date specified in the Leaseholder’s Notice. Timescales are then in place for an agreement to be reached. If there is no agreement, either party can refer the matter to the First-tier Tribunal (Property Chamber) for determination.
In most circumstances a Lessee who has been the registered owner of a property for two years has the statutory right to extend their lease. There is no two year qualification to purchase the freehold but over 50% of the Leaseholders in the building must participate in the purchase. The building must also contain at least two flats. There are further rules should the building include commercial property or if the Freeholder lives in the building and it was originally converted by them.
We provide valuation advice and undertake negotiations for either Leaseholders or Freeholders and represent parties at Tribunal should matters not be agreed. We also provide expert witness reports in relation to absent landlords.
We understand that the process can be quite daunting and that our client’s circumstances are often very different. We are happy to give a free consultation in more detail over the telephone on the process and how we can assist you.
To download a copy of our leaflet please click here. We can also be contacted on 020 8877 0532.
Call us on 0800 876 6002 to discuss how we can help you