In London and the south east
At Sedgwick Turner Ltd, we are proud to offer our expertise as chartered valuators to clients across Chiswick, Kent, London, and South East England. We can provide a plethora of professional services from help with lease extensions to expert witness work. Our team can help our clients with reliable advice and information, so, get in touch with us today for more information.
Why should you extend your lease? A lease is a right to use the property for some time (typically 99 years) which diminishes over that time. As a lease gets shorter, the value of the lease decreases which can affect the saleability of the property.
The right to extend a lease is granted to leaseholders of residential properties (generally flats) by the 1993 Leasehold Reform Housing and Urban Development Act. It allows leaseholders to extend the lease for a further period of 90 years provided they meet certain criteria as set out in the Act. This extended period is added to the remainder of their original lease.
Benefits of Extending the Lease
Increased Saleability of the Property
Easier to Obtain a Mortgage on the Property
Cheaper Extensions if the Lease has Less than 80 Years Unexpired Remaining
Extended Lease is Subject to a Peppercorn Rent (Don’t Have to Pay Any Ground Rent on that Lease)
We have extensive experience in providing compliant RICS valuations for both staircasing and resales as required by Housing Associations.
Where a dispute has arisen, a report from an Expert Witness may be required by the Court to give an independent, objective, and unbiased view to help the Court understand the matter and reach a sound and just decision. It is the role of an Expert Witness to provide this objective view relating to any matter that falls within their field of expertise. In general, the instruction will be received by us from your solicitor following the direction of the Court. We have experience in dealing with Matrimonial disputes, defective building works, property valuations, and other such disputes relating to land and property.
The 1993 Leasehold Reform Act (as amended) provides the right for the qualifying majority of leaseholders to compel the Landlord to sell the Freehold to them. Acquiring the freehold (share) of a property can provide greater control over the management and maintenance of the building, often resulting in lower service charges. It can improve the value and saleability as poorly managed buildings can be less attractive to potential purchasers and harder to mortgage or re-mortgage.
Other benefits include:
Other benefits include:
“Share of Freehold” Flats are Generally Preferred by Potential Purchasers
Leases can be Extended by Agreement Protecting Values Against Erosion by Time
The Longer you Leave It the More Expensive Leasehold Enfranchisement Becomes, Increased Costs Rising Year on Year
Ground Rents can be Reduced by Agreement to Nil (a Peppercorn)
If a Lease or Leases Slip Below 80 Years “Marriage Value” Applies and it is More Expensive to Enfranchise
Freehold Sharers Have More Control of the Building in Which They Live
HMRC recommends that an RICS valuation should be provided to satisfy the requirements of s.160 inheritance Tax Act 1984. This states that the ‘market value’ is “the value at any time of any property shall for the purposes of this Act be the price which the property might reasonably be expected to fetch if sold in the open market at that time." When compiling the report, the Valuator will consider research, local property knowledge, and often make enquiries with local estate agents to attain a value of the land or property, both residential and commercial where appropriate, that the deceased held an interest in immediately before death. The date of the valuation is the date of death.
A Compulsory Purchase Order (CPO) is a legal function which allows certain bodies (such as Local Authorities, Housing Associations, and Development Corporations also known as Acquiring Authorities) to obtain land or property, without consent of the owners. Once the Compulsory Purchase Order (CPO) has been confirmed by the Confirming Authority, usually the Secretary of State, the Acquiring Authority will have the powers to compulsorily purchase your property. At this stage, notices will be served on all parties who may have the right to claim compensation because they own rights which will be interfered with or the value of their land will/may be reduced as a result of works carried out.
To establish the level of compensation that can be claimed a valuation of the property/land owned is required. An RICS Valuation provides an open market value of the property based on what the property might reasonably be expected to realise if sold in the open market by a willing seller. It is generally based on the existing use of the property, but other factors may be considered.