Short unexpired lease term
It’s not often our feet leave dry land so we were excited to receive instructions to cross the Solent and value a stunning apartment with sea views within Osborne Court, a prestigious art-deco building standing proudly on The Parade.
With an unexpired lease term of just 54 years our valuation assisted the owner in extending his lease which ultimately led to marketing the property at its maximum value.
Onerous or Doubling Ground Rent
The vast majority of major mortgage providers now restrict lending on flats with doubling or onerous ground rents. Our lease extension valuation enabled the buyer of this apartment to negotiate a reduction in ground rent to nil as part of the buying process and, in doing so, protect the value of her home and its future appeal to the market.
High Value with Short Lease
The cost of extending the lease of a high value property within a prestigious postcode and with a short lease rapidly increases as each year passes. Our valuation report enabled the owner of this unique flat to issue a s.42 Notice commencing the statutory lease extension process of extending the lease by 90 years and reducing ground rent to nil.
Marketing of these 2 town centre flats was hampered by the unexpired lease terms being less than 70 years. Despite extensive searches the freeholder, or descendants of, could not be traced. Surprisingly this is a regular occurrence; legislation therefore provides for the Court to stand in the shoes of an absentee freeholder, thereby enabling leases to be extended by 90 years and for ground rent to be reduced to nil. Our instructions were to value the lease extension premiums of both flats and represent the client at the First Tier Tribunal with expert witness reports. As a result, the Tribunal granted lease extensions and the flats proceeded to market.
Guineas & Shillings
Despite a lease of 1000 years granted in 1871 and a ground rent of 5 guineas & 5 shillings, buyers of this fabulous house were deterred by the leasehold tenure. Under the Leasehold Reform Act 1967 however lessees are empowered to acquire the freehold interest of their house. What should have been a straightforward matter was complicated by an absentee freeholder. Our instructions were to value the premium payable under legislation enabling the clients’ solicitor to make an application to the First Tier Tribunal for a vesting order and determination of premium.
Present Head-Lessee but Missing Freeholder
Our clients held long leasehold interests of their flats under a head lease. The freeholder was absent and despite extensive searches could not be traced. The head lessee held insufficient terms to grant a lease extension so, in the absence of the competent freeholder and relying on our lease extension valuation reports, applications were made to the First Tier Tribunal for a vesting order and determination of premium.
Acquiring a lease extension or freehold acquisition takes longer where the freeholder can’t be traced however it’s still possible.
s.5 Notice – Right of First Refusal
Following receipt of a s.5 Notice offering lessees the right of first refusal to acquire the freehold, prior to it being sold privately, we were instructed to provide valuation advice to the lessees who, relying on this advice, successfully acquired the freehold to their fabulously located building.
Selling a Freehold at Auction
Intending on selling the freehold at auction, the landlord was required by statute to notify lessees within the development. Collectively the lessees instructed us to value the freehold and to provide advice on the various rights they held under statute before deciding whether to acquire the freehold at auction.
With a large flat roof expanse the freeholder asserted that roof-top development was feasible. Our instructions were to provide initial valuation advice and guidance on the potential for such development in light of recent Tribunal decisions.