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A variety of work is undertaken on behalf of both Landlords and Tenants.
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London N4 A Leaseholder with a 73 year lease was selling her flat. A prospective buyer was found but he would only proceed with the purchase if the flat had a long lease, in excess of 90 years. The Landlord put forward a price for a lease extension to the existing Leaseholder. MyLeasehold carried out a desk top valuation and advised the Leaseholder on how much the extension would cost should they apply using the formal procedure. The final outcome was that the lease was extended by negotiation, with a several thousand pound saving to the Leaseholder, who was informed by MyLeasehold of their rights and the effect these rights have in the process and price. The flat was then sold as planned.
London W2 A residents group were offered to purchase their Freehold from the owners, who wanted to dispose of their interest. Under existing legislation Freeholders must offer the freehold to their Leaseholders first, before selling freely in the market. MyLeasehold analysed the purchase price and reported on how to divide the price fairly between the leaseholders who owned their flats, several flat owners having different lengths of leases. Our report also confirmed that the offer price from the freeholder was at favourable terms.
London SW19 The leaseholders of 2 flats in a terraced house wanted to jointly purchase their freehold. The Landlord had put forward an unrealistic proposal which included development value for the loft space. Development value is a specific compensation element a Landlord can claim for in an Enfranchisement case. MyLeasehold undertook a desk review of the Landlord's proposal and started negotiations on the Leaseholders' behalf. The Landlord's were not receptive. The Leaseholders reconsidered their position and decided that they did not 'need' the freehold' so they applied under the Act for two lease extensions instead. The Landlord could not claim for development value and the premium paid by the two leaseholders was less than the original offer to purchase the freehold.
London W10 The Leaseholders of a converted house wanted to enfranchise their freehold. The Leaseholders had to deal with the freeholder, legally defined as an ‘absent Landlord’. He had not collected ground rent or service charge for 18 years. The Leaseholders had self managed the building as a result. There is a process for Leaseholders to extend their lease or purchase their freehold even if the Landlord can not be found. MyLeasehold undertook the valuation and will prepare the report for presentation to the LVT for their determination of price.
London NW9 Recent Lands Tribunal and Leasehold Valuation Tribunals decisions are redefining yields and discount rates. This has had a significant effect on the sums paid by leaseholders in either extending their lease or enfranchising their building. In short, prices for tenants have increased. MyLeasehold received instructions to negotiate a premium for a lease extension. By close monitoring of Tribunal decisions and analysing the effect of yields and discount rates in specific locations the Leaseholder avoided an LVT hearing as their expectations on price were not realistic. The negotiated settlement price was more than had been budgeted, but the settlement avoided a costly Tribunal. The Leaseholder's original expectation was not realistic. A settlement price was agreed having consulted MyLeasehold
London NW3 An enfranchisement case that ended in the LVT, case reference LON/ENF/1634/05. MyLeasehold representing the Landlord. The determination resulted in the Freehold selling for £59,000 compared to the Tenants application offer of £30,000. We are of the opinion that this case should not have ended at a tribunal hearing. Based on the increased price that was finally set, just under double, we think it is clear which party did not pursue a negotiated settlement route and took the case to the LVT without full regard of the valuation issues and realistic expectation.
London SW19 A case that ended in the LVT case reference LON/ENF/1841/06. MyLeasehold representing the Landlord. The determination resulted in the Freehold selling for £18,700 compared to the Tenants application offer of £5,100 An increase of over 300%. We are of the opinion that this case should not have ended at a tribunal. Based on the increased price that was finally set, we think it is clear which party did not pursue a negotiated settlement route and took the case to the LVT without full regard of the valuation issue and realistic expectation of the parties.
The above sample is a representation of the cases MyLeasehold typically advises on, instructed via firms of solicitors or leaseholders direct.
References are available on request.
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