Collective Enfranchisement
The firm offers collective enfranchisement valuation advice in accordance with both the Leasehold Reform Housing and Urban Development Act 1993 (as amended) and Leasehold Reform Act 1967.
A collective enfranchisement occurs when the lessees of a property, meeting set criteria, wish to pay a premium to purchase the freehold interest from the current owner.
The premium to be paid is calculated as the sum of the capitalised ground rent, reversionary value of the leasehold interests and the leaseholders’ share of any marriage value (applicable for unexpired lease terms under 80 years), together with the value of any appurtenant land, which includes development value.
The valuation is presented as a premium due per leasehold interest with appurtenant land listed separately. The keys inputs to the calculation are the ground rent payable, the unexpired lease terms, the freehold vacant possession values of the units and the scope for development of any appurtenant land.
The firm has acted for both landlord and tenant. The advice extends to providing an opinion on the value of the premium to be paid for the collective enfranchisement (with breakdown), together with recommendation for figures to be inserted into either the notice / counter notice and an acceptable settlement range as a point of reference at the point of agreeing the premium.
After service of the notice and counter notice, we offer a negotiation service, corresponding with the valuer appointed by the other party, to agree on a premium. This is done on the basis of client instructions, and negotiations can be capped in order to control costs.
If the matter is not settled by negotiation, the case will proceed to the Leasehold Valuation Tribunal for final determination. We have acted for clients at the tribunal and are aware of the timelines and documentation required. While the firm strives to avoid the added cost of the tribunal, our experience will guide the client through the process.
We note that, as chartered surveyors, any form of legal Notices, Applications, Claims or similar should be handled by solicitors instructed.
