Leasehold enfranchisement valuation reform “options” proposed by Law Commission
On 9th January 2020, the Law Commission for England and Wales published their greatly anticipated report on leasehold enfranchisement valuation reform. The report proposes options to reduce the premiums that leaseholders must pay in order to buy the freehold or extend the lease on their homes. Such transactions are referred to as “enfranchisement”. Enfranchisement is […]
How to auction freehold ground rents
To auction freehold ground rents, you’ll need to meticulously follow a number of rules and procedures. These are set out in Section 5B of the Landlord and Tenant Act 1987, which relates specifically to the disposal of freehold ground rents at auction. Essentially, Section 5B dictates that freehold sellers must offer the Right of First […]
I’ve inherited a freehold: can I sell it?
Inheriting a property is usually something that people dream of happening to them. But if you’ve inherited a freehold property, it’s a completely different kettle of fish. Chances are you won’t be moving into your newly acquired property and it’s likely instead that you’ll have a bunch of new responsibilities and tenants who will soon […]
Infographic – Do you qualify for the Right of First Refusal
Understanding the numerous legalities and procedures involved with selling a residential freehold can be incredibly challenging, even for those experienced in the freehold industry. And this is heavily influenced by the requirement to adhere to Landlord and Tenant Law and in particular, the Right of First Refusal. Provided by part 1 of the Landlord and […]
8 Winter maintenance tips for freehold properties
Winters in the United Kingdom are undeniably unpredictable, but we can usually expect to experience fierce storms, freezing temperatures and snow on at least a few occasions over these notoriously gloomy months. This can cause some serious problems for buildings and blocks of flats in particular, which are more likely to suffer storm damage due […]
Lease extension guide for leaseholders
If you’re thinking of buying a leasehold flat or already own one, this lease extension guide is an ideal read for you. Understanding lease extensions and your legal rights will enable you to make informed decisions regarding your property and ultimately help you to save thousands of pounds. What is a lease extension? Put simply, […]
Buying a freehold with leasehold properties? Here’s what you need to know.
If you’re thinking about buying a freehold with leasehold properties, there’s a lot you need to take into consideration. Owning this type of freehold property isn’t like traditional freehold home ownership, as you will have a range of responsibilities toward a number of leasehold properties and leaseholders. What’s the difference between freehold and leasehold? If […]
What is peppercorn ground rent?
The Oxford dictionary defines peppercorn rent as “a very low or nominal rent”[i]. But just how low is low? And why is it called peppercorn rent anyway? To understand, we first need to know the difference between leasehold and freehold and explore what ground rent is and why it exists. Homes in England and Wales […]
Selling ground rents – A simple guide for developers
Whenever flats are built, whether that be in a purpose-built block or through a house conversion, an opportunity for selling ground rents will arise. Developers can sell these ground rents in addition to the properties themselves to maximise profits or even to fund the development. This is because current property law requires flats throughout England […]
What happens when you do not comply with the Right of First Refusal?
The Right of First Refusal in residential property matters provides leaseholders with the contractual right to be offered the opportunity to purchase the freehold of their building. This right is provided by Part 1 of the Landlord and Tenant Act 1987, as amended by the Housing Act 1996. As such, there is a legal requirement […]
Price of flats falling in England
According to government statistics, the price of flats has fallen in England since last year. While this could be seen as an ideal opportunity for first-time buyers to get onto the property ladder, it presents a bleaker outlook for flat owners looking to sell their properties. Conversely, all other property types in England including detached, […]
How much should ground rent be?
An update on leasehold reform The way that ground rent is calculated, reviewed and collected has changed dramatically over the last 100 years. What was once a sum to bind a contract between a freeholder and a leaseholder has now become an investment opportunity for those seeking an assured, fixed return. Unfortunately, purchasing and owning […]
