A recent post on the discount rate applying to the enfranchisement of residential leases (more…)

In my June blog, I commented about whether it was right for a landlord to profit  (more…)

I have been asked to give advice for two separate clients as to the respective premiums to extend (more…)

Recently I was asked to advise a client over a landlord’s license to alter issue on her flat. On reading her lease, I noticed it was about 83.5 years unexpired. As a consequence, I advised her to ensure that she served a s42 notice for an extended 90 year lease before the lease drops to 80 years or less to save her paying a considerably higher premium to include half of the (additional) released marriage value that the landlord would receive.

In carrying out the exercise, I looked at the likely premium payable for an 80.1 year unexpired lease compared to that of one of 79.9 years for this ‘normal’ flat of just over 1000 sqft offering 2 bedroom 1 bathroom accommodation. The additional cost in extending the lease the moment it drops to 80 years or a day under increases by 222.5% from around £36,000 to £80,000.

Conversely the increase is less marked at 190% if the flat was a house due to the lower 0.25% deferment rate adopted of 4.75% adopted.

It is even more important for lessees to be aware of this ‘cliff’ if they have recently acquired the lease without taking an assigned notice from the vendor as the 2 year ownership rule will apply before being able to serve notice in one’s own right.

This is an issue that has emerged in enfranchisement circles (more…)

It has taken over a year to get over ‘the line’ (more…)

In last month’s blog  – I confined that the Court of Appeal (more…)

The Court of Appeal last week granted   (more…)

In what must be another first in the London enfranchisement market, (more…)

Although it took over 40 hours to negotiate, my client ended up exactly within less than 1% of where I initially advised (more…)