The areas of lease extensions and collective enfranchisement can be confusing and stressful for all parties involved as there are numerous procedures and deadlines that must be met. At CWJ we have a highly experienced specialist team to guide you through this complex area, providing advice and support. Please contact us today to discuss your needs.
Lease Extensions and Collective Enfranchisement
If you own a flat then you own a “wasting asset”. It is a good idea to look at the remaining length of your lease regardless of whether you wish to sell your flat as:
- whilst the number of years left on your lease gets lower so does the market value of your flat;
- leases with shorter terms may cause problems when re-mortgaging your property;
- leases with less than 60 years remaining are effectively unmortgageable and on the sale of your flat will limit your market.
If you have owned your flat for more than 2 years then you could be entitled to a lease extension of 90 years on top of the unexpired length of your lease with no ground rent.
If your lease is approaching 80 years remaining then now is definitely the time to act. Once your lease goes below 80 years the premium you pay the freeholder dramatically increases.
We are here to help you decide whether an agreed lease extension or a statutory lease extension would suit your particular circumstances.
Instead of extending your lease if enough flat owners in a converted house or block of flats wish to buy the freehold then this can cost each flat owner the same amount as a lease extension.
The benefits of buying the freehold means that you can take control of the management of the freehold and reduce your service charge costs and you are able to grant yourself 999 year lease extensions, improving the value of your flat.
We are here to help you decide whether an agreed purchase of the freehold or collective enfranchisement would suit the particular circumstances.
Right to Manage:
If enough flat owners want to take over the management of the building but cannot afford to buy the freehold then there is a way to take back control of the building through the right to manage process. You will end up with control of service charges and insurance for the building.
We are able to advise on the following Leasehold issues:
- agreed lease extensions
- statutory lease extensions
- collective enfranchisement
- agreed purchase of freehold
- Right of First Refusal
- Right to Manage
- Section 20 Consultation
- drafting new residential leases and amending current residential leases
If you would like to speak to a member of our property team to discuss your options call us today on 01689 887835. Or simply submit your details on the form above and we will contact you shortly.