Collective Enfranchisement and Lease Extensions

Under the Commonhold and Leasehold Reform Act 2002 if you own a leasehold property you now have improved rights, subject to certain criteria, to extend your lease or purchase the freehold (enfranchise). You now have the right to extend your lease by an additional 90 years on your existing term at a peppercorn rent (i.e. no ground rent).

If you own a property which has a lease with 80 years or less on the term it is important to extend it as soon as possible. 80 years may seem like a long time, but in relation to residential property it is considered short and your property will be subject to a resultant yearly reduction in market value.

If your property has above 80 years left on the term it is worth noting that your costs will be significantly less for extending the lease than if the term drops below 80 years, when an additional and significant cost is incurred ( known as the marriage value).

Valuations for lease extensions or freehold purchase require detailed knowledge of the property market and of changing legislation; therefore, it is important to select a Surveyor who understands the local market, the law and your individual requirements.

Rumball Sedgwick has extensive experience and a proven track record working within this field.

For answers to your questions regarding this process contact Harriet Fleming on 01727 854516 or email harriet@rumballsedgwick.co.uk