Collective Enfranchisement Valuation
A group of leaseholders in the shared block of flats can join together in the statutory process called collective enfranchisement. This allows you to take the freehold control into your hands by enfranchising the freehold title from your current landlord, providing you meet the set eligibility criteria in Leasehold Reform, Housing and Urban Development Act 1993.
We can discuss your situation and check whether you are eligible and determine the collective enfranchisement premium you will be required to pay to your landlord.
You may wish to initiate collective enfranchisement for the following reasons:
- The block is not managed efficiently and repairs are left unattended.
- Most of the flats are on the short leases and sometimes it is better to collectively enfranchise rather than individually extend the leases.
- You want to take into your own hands the management of service charges.
- You have absentee freeholder.
REQUEST A QUOTE
SEE HOW CLIENTS ARE RATING US
Why Should You Instruct Lease Extension Surveyor?
You might have seen lease extension calculator online which is good for providing an indicative premium for lease extension but it should not be relied on for serving statutory notices as it does not consider rising ground rents which form a significant portion of the lease extension premium.
The most reliable way to ensure that the correct lease extension premium is paid is to instruct a specialist lease extension valuation surveyor. The surveyor will inspect your property and prepare a detailed lease extension valuation report which will include the premium payable and the likely range that lease extension will be settled at. In order to arrive at the lease extension premium, the surveyor will consider the three most important variables in the lease extension valuation:
GROUND RENT
The ground rent sometimes can significantly affect the premium. Some leases may contain various ground rent provisions and these can be fixed, rising, doubling or even tied to Retail Price Index (RPI). The collective enfranchisement surveyor can help you understand the ground rent nuances and explain the implications of having ground rents increasing by the interval.
LEASE LENGTH
The length of the lease has a direct effect on collective enfranchisement valuation. The longer the lease the cheaper total premium payable will be. The collective enfranchisement surveyor will use lease term remaining to derive reversionary interest value which forms part of the total premium payable.
MARRIAGE VALUE
Marriage value is a formula which forms part of the collective enfranchisement valuation. When the lease falls below 80 years the landlord is entitled to a 50% increase from a short and a long lease value when the lease is extended. The specialist collective enfranchisement surveyor will calculate the short lease value of the property to determine the marriage value compensation payable to the landlord.
Collective Enfranchisement Valuation Experts
We Can Help You With
Collective Enfranchisement Valuation
We can determine whether you are eligible for collective enfranchisement, advise on the premium payable and negotiate the best deal for you with your landlord. Collective enfranchisement claims tend to be contentious in nature. We take the stress away by managing the whole valuation and negotiation process from start to finish.
Collective Enfranchisement Solicitors Advice
We can advise on the legal process of collective enfranchisement. We work and partner with the best specialist collective enfranchisement solicitors that can deal with the conveyancing of freehold enfranchisement without a hitch and serve all required statutory notices swiftly and efficiently saving time and money in the process.
What Our Clients Are Saying About Us
I have obtained genuinely professional advice from Erikas Grig Chartered Surveyors regarding the lease extension valuation. I cannot speak highly enough of the service this company offers. In addition to competitive rates, throughout the process Erikas Grig always kept me updated and always responded to phone calls and emails almost immediately. I will certainly continue to use Erikas Grig Chartered Surveyors for future lease extensions and recommend them to anyone who wishes to obtain professional advice and valuation for Section 42 purposes.
Thank you so much!
Erikas Grig has recently acted for us in a collective enfranchisement of freehold with four flats. From the beginning, he explained the process very clearly in much detail and provided a valuation with high and low premium figures which allowed us to budget for serving the notice. The whole process took 12 months to complete as the landlord's advisors were being extremely difficult and obstructive throughout the whole process. Erikas helped us greatly with negotiations and his knowledge of property law allowed us to buy the freehold from our landlord at a favourable premium.
Read MoreI am pleased with Erikas Grig Chartered Surveyors for helping us to obtain a shared-ownership valuation of our flat in London quickly and at a reasonable fee. I highly recommend them.
Read More
TRY OUR FREE COLLECTIVE ENFRANCHISEMENT CALCULATOR
REQUEST A QUOTE
Relevant Blog Posts
Rent Review In a Commercial Lease, What You Need To Know
Rent review basics The rent review in commercial property is an inevitable necessity occurring at the set time intervals which are prescribed into the lease. It is imperative to understand why getting it right is...
4 Good Reasons To Extend The Lease of Residential Property
Extend the lease or not to extend? This is the question asked frequently. I assure you are not alone in this; thousands of leaseholders are asking this question, especially when they are purchasing the leasehold property or after...
Leasehold – What is it?
What is leasehold? Leasehold is a form of tenure where one party buys a specified space for a specified time length. Therefore, when you own a leasehold property you own the lease and the land and building structure is owned by the...