Case Study - Lease Extensions Collective 1
Case Study - Lease Extensions, Collective Enfranchisement
Jean Howe – Partner Kirkby & Diamond Ref.: JH/04/7’07
The objective on this simple individual lease extension of a maisonette was to secure the long leasehold interest in the property, either by action via the Leasehold Reform Housing and Urban Development Act 1993 as amended or by negotiation with the freeholder.
An inspection was undertaken and it was agreed with the client, the owner occupier of the maisonette, that Kirkby & Diamond would provide a valuation under the terms of the Act and also a valuation on the terms as proposed by the Landlord.
It was agreed that an informal negotiation should be undertaken with the freeholder to agree terms for a lease extension rather than serving a formal notice.
Negotiations with a rather elusive Landlord continued for some four months until terms were agreed and subsequently, six months later, a new lease was completed with a reduced premium having been paid by the client to reflect the continuation of a payment of ground rent.
Kirkby & Diamond liaised closely with the owner occupier to understand the needs of that particular individual to avoid conflict with the Landlord whilst firmly moving towards agreeing a new lease on the premises, thereby ensuring that the maisonette stays mortgageable for many years into the future.
By determined negotiations, the successful outcome was achieved. The client considered that they had obtained good value for money.