There has been much said in the press recently about leasehold property, particularly on the issue of escalating ground rents and developers selling houses on a leasehold rather than a freehold basis.
So much so that the government instructed the Law Commission to undertake a review on leasehold enfranchisement. Their report on ‘options to reduce the price payable’ was published on 9 January 2020 and we await further information from the government on how they intend to implement the findings.
The inescapable fact is that a lease on a property is a diminishing asset which slowly loses its relative value over the length of the lease. All leaseholders should know that, subject to owning a property for a minimum of 2 years, they have a statutory right to extend their lease by an additional 90 years and there is an accepted way of calculating the cost of this lease extension.
The cost of any lease extension rises exponentially through the length of the lease, so it is best to act early. A group of leaseholders can also come together to acquire the Freehold of their building.
A helpful website for anyone with an interest in a leasehold property may be found at the Leasehold Advisory Service which offers free advice to leaseholders and freeholders alike.
Ian Perry FRICS – co-founder of Perry Bishop and Chambers – has over 40 years experience in advising both leaseholders and freeholders in these enfranchisement cases and is able to offer advice on taking the statutory route or extending a lease on an informal basis.
Contact Ian to discuss any of your leasehold concerns:
t. 01242 231754
m. 07774 726665