Leasehold Houses – Buying the Freehold

If you are the long leaseholder of a leasehold house you have the legal entitlement (obtained through the Leasehold Reform Act 1967) to acquire the freehold to your premises.   The price you have to pay for the freehold could vary tremendously, dependent upon the number of years unexpired, the value of the property, the ground rent that is paid and most crucially which method of valuation under the legislation is to be adopted for the valuation.

The first job for the surveyor is to initially confirm that you have a statutory right to acquire the freehold (these days almost all long leaseholders have this right) and then to determine which of the valuation methods prescribed by the legislation is appropriate for the case in hand.   The valuation method to be applied will depend upon the location of the property, the amount of the last recorded rateable value (if the property has a rateable value) and the amount of ground rent, which you pay.

If you are considering purchasing the freehold to your house we will happily check your eligibility and then report to you with respect to the premium which we would expect you to have to pay to acquire the freehold.   Thereafter we can undertake negotiations with the freeholder to agree the price and assist you with organising the legal transfer of ownership of the freehold to yourself.

It is often possible to agree a price without re-course to serving a formal Notice under the legislation.  However if the landlord is not prepared to agree a figure, which appears realistic, then we will draw up the necessary Notice and arrange for service upon the landlord.  Ultimately if the landlord does not agree to a realistic figure we will represent you in the Leasehold Valuation Tribunal.  The Leasehold Valuation Tribunal have far and varied powers with respect to leasehold properties and in this case will be required to determine the price you will have to pay, which will be influenced by the valuation evidence put before it by the respective parties.

Contact Mike Stapleton & Co.

For a free informal chat about your lease extension or any other matter call Mike Stapleton FRICS on 0207 125 0499 or feel free to fill in the form below and we will get back to you as soon as possible.