Lease extension on a flats and non-freehold properties is a right that was conferred upon leaseholders by the 1993 Leasehold Reform Act. This legislation came in as part of tranche of new Acts which aimed to rebalance the leaseholder/freeholder relationship. There are a range of reasons why a lease extension may be sought – and the First Tier Tribunal (formerly Lease Valuation Tribunal) is where you apply if there are problems during this process and dispute resolution is needed.
Why might I want to extend my current lease?
Lease extension is normally undertaken to increase the value of a property, which, in turn, makes it easier to re-mortgage or sell. Understandably, potential buyers are less willing to purchase a property which has a shorter lease. Security in a property is one of the major influencing factors for buyers to consider. A member conveyancing solicitor with Oratto will be able to explain in detail the rationale for extending a lease.
How can I get a good idea of what my lease valuation may be?
Assessing the value of a lease can be difficult. The final figure is made up of several factors, including:
- the location of the property
- the terms of the current lease
- the value of the flat/property itself
- length of the current lease
Once you know your leasehold valuation, you can then determine what price you will offer the freeholder. Legal expertise in these situations is crucial for negotiation and Oratto member lawyers have the vital combination of knowledge, experience and skills in leasehold valuations to ensure you get the best deal possible.
What happens if there is a dispute?
Should you run into a problem, the First Tier Tribunal is where a resolution can be sought. You can apply to this tribunal in respect of leasehold disputes, management disputes and leasehold enfranchisements, amongst other things. These would all fall under ‘leasehold cases' rather than ‘residential property' cases. Your Oratto member lawyer will be able to guide you through this process.
The First Tier Tribunal has a strong focus on reconciliation for the parties involved. While it oversees disputes between leaseholders and freeholders, its over-arching aim is dispute resolution and it carries the power to recommend alternative dispute resolution to the parties if this is deemed appropriate.
Leasehold valuations can be a complex area of law to consider and good advice is essential from the start. At Oratto we can quickly connect you with a solicitor of your choice, who will be able to provide the support and reasoning that you may need in a lease extension or valuation dispute.
Contact us today for a more in-depth analysis of your leasehold position with one of our member lawyers.
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