Making the most of your leasehold property
Do you own a leasehold property? Would you like to consider extending the lease or even purchasing the freehold? At Bolt Burdon, we are specialists in this area and can guide you through the processes you need to follow to enable you to do this.
Normally when you purchase a leasehold property, you will expect to have over 80 years of the term remaining. The 80-year term is important because, when your lease falls below 80 years, you will have to pay “marriage value” as part of the overall premium paid to extend your lease. This means that the cost of extending your lease can rise significantly. Further information can be found on our Extending your Lease information page.
If you live in a block of flats where more than 50% of the owners are interested in purchasing the freehold, then you may be able to purchase this from your landlord. This process is often referred to as Collective Enfranchisement. Further information can be found on our Buying the Freehold Interest information page.
What if you own a house subject to a long lease? Did you know that you could also ask your landlord to sell the freehold to you? The Leasehold Reform Act 1967 provides a statutory framework to achieve this. Again, further information can be located on the information page referred to above.
Occasionally, your landlord may decide to sell the freehold interest it owns in your building to a third party. Usually, your landlord will issue you with a notice, often referred to as a ‘Section 5 Notice’, which gives you the right of First Refusal. That is, you have the right to purchase the freehold first and for the price provided in the notice. Should you receive such a notice, we can assist you in responding and securing your right under the relevant legislation. Further details can be found on our Right of First Refusal information page.