Achieving an optimal settlement for our clients during Lease Extention negotiations.
Lessee are entitled to a statutory Lease extension of an additional 90 years at a peppercorn Ground Rent as provided by the Leasehold Reform Housing and Urban Development Act 1993 (as amended) provided that ownership runs for at least 2 years since registration and the lease was originally granted for a term of at least 21 years.
A premium is payable to the Freehold Landlord (to compensate the Landlord for what they have lost by granting the extra 90 years) plus fifty percent of the marriage value (the additional value resulting from the marrying of the freehold and leasehold interests).
At AM Surveying Property Services our RICS Chartered Surveyors have many years experience negotiating Lease Extention premiums, the process is started by service of a section 42 notice which serves at least three important functions:
1) It fixes the date of valuation.
2) It freezes the length of the lease for the purpose of assessing the premium.
3) It forces the landlord to comply with the statutory timetable. The landlord has to respond with a counter offer contained in a section 45 notice within about two months.
The negotiation process to extend a Lease will then be started and we will use our expertise to achieve the best possible settlement.
Contact us for further advice.
RICS Chartered Surveyors
GOOD TO KNOW
The shorter the Lease the more expensive the premium, the sooner you serve your s42 Notice the sooner your Lease Extension premium stops getting more expensive.
Contact us for further assistance and advice.