Gregsons Solicitors

Leasehold Enfranchisement

Persons responsible for this department: Edmund Middlehurst and Anne Daniels.

Extending your lease

As the owner of a flat which has a lease of less than 90 years to run, you are increasingly likely to experience difficulties in selling your flat or using it as security to raise money. For instance Building Societies and other Financial Institutions are becoming more wary of leases with a remaining term of only 70 years or less and some lenders won’t deal with them at all.

On payment of a premium, the 1993 Act allows you to obtain a 90 year extension to your existing lease at what is known as a peppercorn rent. The effect of this is that, once the extension is in place, not only will you have a much longer lease, which will be worth more and should repay its cost in the consequent increase in value. You will also not have to pay any further ground rent to your landlord.

If you wish to find out about extending your lease – which is known as individual enfranchisement – and the likely costs involved, please click here.

Buying your freehold

The Leasehold Reform, Housing and Urban Development Act 1993 (the 1993 Act) allows flat owners (i.e. Leaseholders) to group together and collectively purchase from their landlord the freehold of their building.

For a group of Leaseholders, owning your freehold has enormous advantages.

As the owners of the freehold you will be able to grant yourselves new 999 year leases in a modern form. This will considerably enhance the value of the individual flats in the building

You can manage your own affairs in exactly the same way as the owner of a house would. You decide when repairs and maintenance work have to be carried out and how much should be spent. No longer will you be at the mercy of either an absentee landlord or inefficient managing agents whose interests do not necessarily coincide with your own and you can do away with management charges as you will be managing the property yourselves.

If you wish to find out more about buying your freehold - which is known as collective enfranchisement – and the likely costs involved, please click here .

Buying the freehold of your house

Alternatively, if you own a long lease (i.e. a lease that was originally granted for at least 21 years) on a house as apposed to a flat, then in all likelihood you will be able to buy the freehold of your house or extend its lease under the Leasehold reform act 1967.

If you wish to find out more about buying you’re the Lease of your house and the likely costs involved, please click here.

PausePlay | Up | Down

scroll






		Leasehold Enfranchisement Persons responsible for this department: Edmund Middlehurst and Anne Daniels. Extending your lease As the owner of a flat which has a lease of less than 90 years to run, you are increasingly likely to experience difficulties in selling your flat or using it as security to raise money. For instance Building Societies and other Financial Institutions are becoming more wary of leases with a remaining term of only 70 years or less and some lenders won’t deal with them at all. On payment of a premium, the 1993 Act allows you to obtain a 90 year extension to your existing lease at what is known as a peppercorn rent. The effect of this is that, once the extension is in place, not only will you have a much longer lease, which will be worth more and should repay its cost in the consequent increase in value. You will also not have to pay any further ground rent to your landlord. If you wish to find out about extending your lease – which is known as individual enfranchisement – and the likely costs involved, please click here. Buying your freehold The Leasehold Reform, Housing and Urban Development Act 1993 (the 1993 Act) allows flat owners (i.e. Leaseholders) to group together and collectively purchase from their landlord the freehold of their building. For a group of Leaseholders, owning your freehold has enormous advantages. As the owners of the freehold you will be able to grant yourselves new 999 year leases in a modern form. This will considerably enhance the value of the individual flats in the building You can manage your own affairs in exactly the same way as the owner of a house would. You decide when repairs and maintenance work have to be carried out and how much should be spent. No longer will you be at the mercy of either an absentee landlord or inefficient managing agents whose interests do not necessarily coincide with your own and you can do away with management charges as you will be managing the property yourselves. If you wish to find out more about buying your freehold - which is known as collective enfranchisement – and the likely costs involved, please click here . Buying the freehold of your house Alternatively, if you own a long lease (i.e. a lease that was originally granted for at least 21 years) on a house as apposed to a flat, then in all likelihood you will be able to buy the freehold of your house or extend its lease under the Leasehold reform act 1967. If you wish to find out more about buying you’re the Lease of your house and the likely costs involved, please click here. PausePlay \| Up \| Down scroll