Lease Extension
and
Freehold Enfranchisement

Under the Leasehold Reform, Housing and Urban Development Act, 1993,
as amended by the Housing Act, 1996 and the Commonhold and
Leasehold Reform Act, 2002.

The Legal Background

The legislation set out above confers on long leaseholders (leases originally granted for a term exceeding 21 years) two rights:-

The first right is for a group (more than 50%) of leaseholders to purchase the freehold interest in the building in which they reside, subject to certain qualifications.

The second right is for individual leaseholders, again subject to certain qualifications, to renew their leases so that the term adds an additional 90 years to the current length of their leases and at an effective zero Ground Rent.

Where to start

If you are an individual leaseholder and have decided you wish to extend your lease, or a group of leaseholders who wish to acquire the freehold of your building, it is likely that you will firstly wish to know the likely cost. This will entail a Valuation which is made up of three components:-

  • The reduction in value of the landlord’s interest
  • Any compensation for loss arising from the grant of the new lease
  • Half of the ‘Marriage Value’* if leases have less than 80 years unexpired

*Marriage Value is the potential for increase in the value of the flat arising from the grant of a new lease, or acquisition of the freehold interest.

Having an assessment of value will allow you to decide whether you wish to proceed and commence the formal processes, as set out in the Acts. You should be aware that the total cost of acquiring a new lease, or the freehold is likely to be considerably more than the assessment of value noted above. This is because you will be liable not only for your own professional fees, but also the reasonable fees incurred by the Landlord.

The Services Available

Nigel Carter & Co. are included in the listing of Surveying practices competent in this field by the Leasehold Advisory Service. For further information, advice and background to the legislation, we suggest you visit their Website:
www.lease-advice.org

We act for both lessees and Landlords and provide the following services:-

  •   Valuation advice as to the amount of an offer, or counter-offer which
    _should be included in the appropriate Notices under the Acts

 

  •   Undertaking negotiations on behalf of the lessees, or Landlord

 

  •   Preparing and providing expert evidence to a Leasehold Valuation _Tribunal, or Lands Tribunal