If you are a leaseholder you have a right to extend your lease, however if you don't the property will revert to the freeholder once your lease expires. Your options are:
Get a lease extension
The first step here is to get an estimate using a Lease Extension calculator using this you will have an idea as to what premium you may have to pay your freeholder. If your relationship with the freeholder is amicable you could consider making an offer straight away, this offer needn't be as much as the calculator suggests. You might get lucky here.
If not you will have to get a full lease valuation, conducted by chartered surveyor. With this you will have an accurate premium and using it you can begin negotiations with the freeholder to extend the lease. If the freeholder is un-cooperative you can instruct Fridaysmove to serve notice, handle the negotiations or attend a Leasehold Valuation Tribunal for more protracted cases.
Purchase your Freehold
This is all assuming you are the only occupant of the property. You must have a lease, or had a lease for the property in excess of 21 years. And no more than 25% of the property can be used for non-residential purposes.
Once you have this you will need a full lease valuation of the property. Then you can serve notice to the freeholder detailing your intent to buy. If there is a counter offer you will enter into negotiations and may have to attend a Lease Valuation Tribunal. These are all things that Fridays, and a solicitor can help with.
If there are more occupants then you will have to collectively purchase the freeholder, something that is known as collective enfranchisement.
It is your legal right to collectively purchase a freehold, provided that two thirds qualify as leaseholders. This would generally apply to a block of flats, or a similar multiple residential property.
To qualify as a leaseholder you must have a long lease (21 years or more) and 50% of all residents must be willing to co-operate in the purchase of the freehold. If there are only two flats in the property then all residents must co-operate in the purchase. Again, no more than 25% of the property can be used for non-residential purposes.
Then the steps follow as above:
- Get a full lease valuation
- Appoint a solicitor to handle the legal work
- Serve notice to landlord/freeholder
- Handle negotiations
- Attend a LVT (Lease Valuation Tribunal)
The latter steps can be avoided, provided the freeholder accepts the initial offer.
To speak to Fridaysmove about helping you with any part of your Lease Extension or freehold purchase, call 033 0660 0286.