Did you know...

...that if you live in a leasehold flat, maisonette or house, the value of your property, in a stable market, will reduce year on year. The shorter the lease becomes, the more quickly the value will diminish.

Many lessees do not consider protecting their asset using the Leasehold Reform legislation until they are considering selling. Potential purchasers are now very aware of the effect of shortening leases particularly where market conditions may be fluctuating. Act now to prevent any delay when you do want to sell.

You should review your current lease term now to ensure that appropriate action can be taken where necessary, Clarke Hillyer is here to help you in this process and can advise you what action to take.

The following graph from the Leasehold Advisory Service illustrates the reduction in values related to the unexpired lease term on their determinations since 1994.

Lease Extension Rights

The Right provided by the 1993 Leasehold Reform Act (as amended) is for the grant of a new lease for a term of 90 years, plus the present unexpired term, all at a peppercorn (nil) rent.

The Right is subject to a number of
qualifying criteria of which general details
can be found at http://www.lease-advice.org.uk

Clarke Hillyer’s role

• providing the “best and worst” case valuations, in order to best advise you on
the possible outcome of the negotiations

• advising on the amount of the offer
to be made in the Notice

• advising you on responding to the
landlord’s Counter-Notice

• negotiation and settlement of the price and other terms of the lease, including representation at the Leasehold
Valuation Tribunal (LVT) is required

Collective Enfranchisement

The Right provided by the Leasehold Reform Housing and Urban Development Act 1993 (as amended) is for the enforced sale of the freehold of the building, to the nominee purchaser of a group of leaseholders of the flats who represent at least half of the flats in the building.

Where there is any intervening interest, like a head lease, this must generally be acquired as part of the purchase by the leaseholders. The right is subject to a number of qualifying criteria of which general details can be found at http://www.lease-advice.org.uk

Clarke Hillyer’s role

• providing ‘best and worst’ valuation
advice to fully appraise the
leaseholders of the possible outcome of the negotiations;

• advising on the amount of the offer to be made in the Initial Notice;

• responding to the landlord’s
Counter-Notice;

• negotiation and settlement of the price;

• advice on structural and repair
condition and implications for future
maintenance costs/service charges;

• advice on future management.