What with all the ‘best of’ and round up lists of 2011 popping up everywhere, I thought I’d share a little case of ours from last year.
In December 2009 we advised a lessee that the freehold of their 927 year lease was worth £129. It took until September 2011 for the LVT to determine the same, with a £2,000 costs award against the freeholder along the way in the county court for not admitting the claim. The freeholder’s conduct was not any better in the LVT nor less obstructive and unreasonable. Another cost was awarded against him for the maximum of £500.
As far as we know the premium determined by the LVT of £129 is a record-breaker and the LVT determination itself was delivered 24 hours after the hearing, which we also think is a record! An application to the Guinness Book of Records is pending.
The Landlord lost just under £2,400 on the deal. An interesting case in its own way.
Last week we were mentioned in an article published in the Manchester Evening News, entitled ‘It Makes Sense To Buy Your Freehold‘.
In the article we discussed how lenders are becoming increasingly reluctant to lend on short leases, which is why shorter leases are problematic to buy and sell. We also mentioned that the cost to extend a lease or buy the freehold of your property is negotiable, which is why we recommend that leaseholders (and freeholders) always take their own independent professional valuation advice.
We find that all too often property owners do not know their rights and end up paying more or receiving less than what they are entitled to.
Mark Wilson, Managing Director of myleasehold, says: “Leaseholders should never be shy to enquire whether the premium proposed by a freeholder is fair and reasonable. The method used to calculate the premium is complex, so home owners should hesitate before they try to negotiate terms without expert advice. Freeholders should receive what they are entitled to, not necessarily what they want.”
Launching today we have a very exciting new feature for our website: the Lease Extension Calculator.
Whilst the calculator is for guidance only and cannot be relied upon to give completely accurate figures, we hope that many will find it a useful starting point when considering their position with regards to extending a lease.
If you use the calculator, see the premiums it produces and want to know more – please call us today to discuss your options. We offer a free 10 minute consultation and one of our advisors will be glad to discuss any questions you may have. Alternatively, you can email us, or instantly chat with us using the chat widget at the bottom right-hand side of the page.
With the September quarter day looming we have recently had a number of calls from confused Leaseholders claiming that their Landlords are still charging them ground rent, even after they have extended their leases under the Act.
I wouldn’t be surprised if there are more Leaseholders out there who continue to pay the rent without knowing that they don’t need to. This is something we will now endeavour to emphasise to our clients who obtain a statutory lease extension – it seems some of the larger Landlords may not be updating their systems. Property managers also take note!
If you have negotiated a lease extension outside of the Act (i.e. ‘informally’), ground rent may still be payable, depending on the arrangement you have come to with your Landlord. However, don’t forget that a statutory lease extension of 90 years executed under the relevant legislation eliminates the ground rent.
myleasehold is delighted to welcome our newest employee, Ghulam Yasin, to the team.
Ghulam is a Leasehold Reform Surveyor, and brings his extensive knowledge and experience from previous positions at Cluttons LLP and Gerald Eve to our growing office.
We are thrilled to have him with us, and look forward to many new exciting ventures together. You can read more about Ghulam on our Meet The Team page.
myleasehold are looking for a Leasehold Reform Surveyor. If you, or anyone you know may be suitable for the position please get in touch!
Welcome to the brand new myleasehold website. We have had a fantastically busy year and are looking very much forward to even more in 2011.
We have set up an industry related forum for discussion and networking on the professional networking website, LinkedIn. The group is called Leasehold Enfranchisement.
Mark has been busy with a lot of valuation work, and more professional presentations at law firms or estate agents’ offices, explaining all about the valuation process and our function in it.
We have also taken on a new consultant Surveyor, Ivan Taylor, who will be working closely with us from now on. Read more about him on our About Us page.
Finally, we have welcomed into our expanding team the lovely Sarah Strain.
Myleasehold are planning many new ventures for the year ahead, and we are delighted to be able to keep you up to date via this blog and the website!
Thank you for taking the time to visit our new site.
- the myleasehold team