Following on from my previous January (valuation) and July (law) blogs (more…)
Delighted to have negotiated an additional element of premium for a landlord client to reflect added potential for redevelopment of a flat where the lessee sought an extended 90 year lease.
The lessee had separately obtained a valuable planning consent prior to serving notice that permitted him to not only extend the flat by an approx. additional 21% in internal space but also at the same time completely rearrange the accommodation. The result would not only create an additional (and new master) bedroom with en-suite bathroom but would also rearrange the layout into a far more practical and sensible space.
As the planning permission was in place as at the valuation date, a hypothetical purchaser would have paid more for the benefit of the consent which in turn flowed through to the landlord on reversion of the lease over 91 years away.
Despite the added increase in value net of development costs was considerably discounted to reflect the long distant reversion, the end result nevertheless produced an additional approx. 25% increase over the underlying in repair settled freehold rate for the existing flat.
The lessee will still need landlord’s consent to carry out the works for additional premium.
The second part of the Law Commissions proposals (more…)
It is extraordinary how life comes round full circle. I well remember visiting (more…)
It is so important to not only do one’s homework (more…)
Since starting my eponymous company specialising in advising and negotiating premiums (more…)
The recent decision of the Court of Appeal (more…)
Delighted to have saved a client a reduction of over (more…)
The Law Commission’s report on enfranchisement reform published today strives to find a solution to the difficult balance between making the process simpler and cheaper for tenants yet at the same time respect that landlords must be compensated fairly.
The commission has proposed three broad schemes with associated reforms:
1) assumes leaseholder in never in the market [abolish marriage value entirely];
2) assumes the leaseholder is not now in the market but maybe in the future [adopts a form of discounted marriage value referred to as hope value]; and:
3) assumes the leaseholder is in the market [adopts marriage value per the current status quo]
which will give the Government much food for thought as to how it will intend to amend the current law.
Does the landlord care if (more…)