Lease Extension Solicitors
There are various options for lessees of private residential flats to enhance the value of their investment.
One such option would be to exercise the right to a statutory lease extension pursuant to the Leasehold Reform and Urban Development Act 1993 whereby the owner of a leasehold flat is granted a new lease, adding 90 years to the existing unexpired term of his lease at a peppercorn rent.
Lessees will have to pay a premium to acquire the new lease and it is important to exercise this right before the term of the existing lease falls below 80 years. Once there is less than 80 years left on the term a lessee will have to pay “marriage value” which could significantly increase the premium payable.
Lease extensions are usually straightforward and not time consuming compared to collective enfranchisement whereby qualifying lessees of flats have the right to acquire the freehold of their building.
The right to enfranchise would give lessees the power to manage the building or estate themselves. By purchasing the freehold, the participating lessees would take on the responsibilities of the freehold owner to maintain and insure the building.
Lessees normally set up a company to acquire the freehold and it is advisable that they enter into a shareholders agreement or, if required, a participators’ agreement to set out the basis on which they will purchase and manage the building.
Contact our lease extension, leasehold enfranchisement and property solicitors today
To discuss your lease extension matter please contact one of our lease extension and property solicitors on 01895 207976 or 01895 207988.