In most situations, once a lesse has owned their flat for two years, they are entitled to extend their lease under the Leasehold Reform Housing and Urban Development Act 1993, as amended by the Commonhold and Leasehold Reform Act 2002. This removes the ground rent and extends the lease by an additional 90 years. The freeholder must be compensated for this loss and it is important that the valuation is carried out by an experienced valuer to ensure the correct advice is given and the appropriate premium paid. Particularly where leases have dropped below 80 years as an added element known as marriage value makes the calculations more complicated and the premium paid higher.
An important point to take into consideration is that the Act also provides for the freeholders reasonable and appropriate costs to be paid.
Contact us to:
- Understand to what you are legally entitled
- Gain an understanding of the issues
- Obtain a valuation
- Know your rights