Hugely delighted for my landlord client that in negotiating the freehold on the back of an alternative 90 year extended lease under LRHUDA93 on a house which failed to qualify under s2(2) of the LRA 67 to enfranchise, it received a substantially higher premium to nevertheless transfer the freehold voluntarily.
From my client’s point of view – it not only gained additional marriage value (as the house would have fallen to have been valued to a site value proportion under s9(1) of the Act) but also a considerably higher premium than if the tenant had decided to withdraw, wait a couple of years and then re-apply for the freehold on the back of the proposed ‘biggest reform to English property law for 40 years’ changes to leasehold enfranchisement law announced by the government earlier this year once enacted.
In assessing the added premium received, it would be conservative to say that the uplift was at least an estimated 170% over the premium it would have received under s9(1) if the house had qualified.
Many congratulations.