Bevirs’CommercialTeam have a particular specialism in this work which can be significant to investors in properties subject to residential long leases.
Leaseholders of residential property are entitled to extend the lease of their flat or house. Lease extensions can add value to a property for leaseholders, and for freeholders, a lump sum will be paid for extending the lease.
Leaseholders can join together to buy the freehold of their block of flats (“enfranchisement”). The participating leaseholders can extend their leases, abolish ground rents and run the maintenance of the building.A premium will be paid to the freeholder.
Leaseholders can deal with a freeholder privately. However, there is a statutory procedure which gives more certainty, but which sets out a strict procedure and timescales for both landlord and tenant to follow. There can be substantial costs consequences if the procedure is not followed. If a freeholder is served with notice relating to a lease extension or enfranchisement, advice should be sought as soon as possible to ensure the correct procedure and timescales are met.
Bevirs can advise both tenants and landlords in this highly specialised area of work.