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Leasehold enfranchisement

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We are the UK’s leading residential leasehold enfranchisement experts, advising not only the prime central London landed estates, but individual landlords and tenants as they navigate this sphere.

It is our expertise on which other practitioners base their judgements and assumptions, with our 1996 ‘graph of relativities’ acknowledged as the industry standard, since when we have also published a 2016 ‘graph of relativities’.

Our comprehensive range of services includes bespoke valuations, negotiating premiums and providing evidence as expert witnesses.

 

Copies of our Tables of Relativities:

Gerald Eve 1996 Relativities
Gerald Eve 2016 Relativities

Briefing note on Gerald Eve 2016 relativities

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Key Contacts

Charlie Coombs

Partner
Leasehold Enfranchisement
London – West End

Ania Symonowicz

Partner
Leasehold Enfranchisement
London – West End

Related Services

Asset Valuation & Advisory

FAQs

Frequently asked questions

  • What is a leasehold enfranchisement?

    Home ownership is a complex matter and legal terminology can also impact the decision-making process when it comes to home ownership. This is why it’s important to understand what leasehold enfranchisement means for your home ownership.

     

    A leasehold property refers to a property that you own for a certain amount of time, as outlined in the lease agreement. A leasehold enfranchisement is the process you go through to extend your lease or purchase a share of the freehold. 

     

    When you purchase a leasehold property, you enter an agreement with your landlord and this agreement is known as a leader. Leases can be long-term which means you are able to own the property for 100 to even 999 years depending on the agreement. 

     

    However, leasehold properties can be bought and sold when they have years remaining on the lease. Therefore, when you have 80 – 90 years left on your leasehold, you need to consider an extension. This is because the value of a short lease can quickly drop and when a lease falls to below 80 years, it will cost more to extend.

  • How does leasehold enfranchisement work?

    A lease means that a tenant has the right to occupy a property for a specific period of time and as the length of the lease reduces, its value decreases which means it becomes more expensive to extend. With this in mind, most leaseholders have the right to extend the term of the lease, and our advisors are able to advise on the possible outcomes of negotiations in this regard.

     

    There are a variety of steps you can go through in order to extend your leasehold, these include:

     

    • Consider approaching your landlord to informally enquire about the terms they will grant for an extension. This is a starting point, however, it is vital you reach out to professional consultants before agreeing to anything and reaching the best possible terms.
    • Work with a consultant or valuation surveyor with expertise and experience in leasehold enfranchisement. Experts will be able to offer bespoke valuations, negotiate premiums and offer evidence as expert witnesses in the process. 
    • If you are unable to reach an agreement informally, you are able to make a formal offer and this is something a solicitor will be able to help you with. 
    • The landlord must serve a counter notice by the date set out in the formal offer and this must state whether or not the landlord admits the claim and which proposals have been accepted and which have not been accepted.
    • After the counter notice has been served, the parties enter negotiations. 

     

    It is important to note that tenants are able to ask the landlord for lease extensions at any time, however this can be a complicated process. This is why it is recommended that professional surveyors, valuators or solicitors guide you on the process.

  • What is enfranchisement valuation?

    The valuation process of a freehold of a block of flats is always based on the investment value. In order to value an investment for enfranchisement purposes and to achieve such an income for so many years there has to be an in-depth  calculation. 

     

    As you will have to pay a premium in order to extend the leasehold, a surveyor will do a valuation of the property and help you select a realistic price for lease extension. 

     

    How much you pay depends on a variety of factors including:

     

    • Annual ground rent
    • Years left on the lease
    • Property value

     

    This is why it is vital you work with professional leasehold enfranchisement specialists as they will be able to calculate and identify the full investment value of the property.

  • How can we help you?

    Our team of leasehold enfranchisement specialists are able to assist you with a variety of procedures including:

    • A leasehold enfranchisement valuation report
    • Negotiations with landlords
    • Negotiate premiums
    • Liaise with solicitors appointed
    • Provide expert advice
    • Provide evidence as expert witnesses.
    • Understand the two potentially conflicting standpoints of both leaseholders and landlords
    • Advice on obligations and costs

     

    We know that extending a lease can become complicated and our team of experts will make a significant difference in the process and help you achieve the best possible outcome.