Lease extension statutory rights
Download
1 / 10

Lease Extension: Statutory rights - PowerPoint PPT Presentation


  • 78 Views
  • Uploaded on

Lease Extension: Statutory rights. Nadeem Hussain Islington Leaseholder event 10 th October 2012. Why extend the lease?. Value and marketability diminishes over time Enhance attraction to mortgage lenders Avoid marriage value 80 years rule Freehold purchase may not be possible

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Lease Extension: Statutory rights' - belden


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Lease extension statutory rights

Lease Extension: Statutory rights

Nadeem Hussain

Islington Leaseholder event

10th October 2012


Why extend the lease

www.lease-advice.org

Why extend the lease?

  • Value and marketability diminishes over time

  • Enhance attraction to mortgage lenders

  • Avoid marriage value

    • 80 years rule

  • Freehold purchase may not be possible

  • One flat in building

  • Resident landlord

  • Commercial area is more than 25%

  • Takes too long


Lease extension

www.lease-advice.org

Lease Extension

  • Introduced by Leasehold Reform Housing and Urban Development Act 1993 as amended by Commonhold and Leasehold Reform Act 2002 Act

  • The right to a new lease of 90 years plus the existing

    term at a peppercorn ground rent

  • Price including capitalised ground rent, deferred reversion and marriage value if less than 80 years left on lease


Qualifying tenants

www.lease-advice.org

Qualifying tenants

  • Must have owned flat for 2 years

    • Removal of residence test

    • Considered that tenant must be registered proprietor of the lease at HM Land Registry for at least 2 years

  • Lease must have been in excess of 21 years when originally granted


P rocedure

www.lease-advice.org

Procedure

  • Prudent to obtain a valuation

  • Serve Tenants’ Notice on landlord

  • Landlord to respond with a counter-notice

  • Application to LVT within 6 months from date of Counter-notice


Serve notice s42

www.lease-advice.org

Serve notice (s42)

  • Specify a premium

  • Specify terms of new lease

  • Personal signature of lessee(s)

  • Give landlord not less than two months to serve counter-notice

    NB Can transfer benefit of notice when selling flat


Landlord s rights

www.lease-advice.org

Landlord’s rights

  • Can request a deposit

    • The greater of £250 or 10% or premium proposed

  • Right of access

    • To the flat to obtain valuation

    • Enforceable through application to the county court


Counter notice s45

www.lease-advice.org

Counter notice (s45)

  • Admit the claim

  • Deny the claim

    • landlord to apply to the county court within two months of giving counter-notice

  • Redevelopment rights

    • last five years of the term

  • What if landlord fails to serve counter-notice in time?

    • leaseholder to seek vesting order in the county court.


Procedure post counter notice

www.lease-advice.org

Procedure post – counter-notice

  • Negotiation

  • Between two and six months after counter-notice given either party can apply to LVT to decide disputed terms

  • Failure to apply

    • deemed withdrawal

      • cannot apply for another twelve months and pay landlord’s abortive costs

  • Once terms agreed or decided by LVT move towards completing the new lease within two months(“appropriate period”)

  • If fail to enter into binding lease within the appropriate period another two months to seek vesting order in the county court otherwise deemed withdrawal


www.lease-advice.org

Questions?

The Leasehold Advisory Service

020 7383 9800

[email protected]

www.lease-advice.org

Maple House, 149 Tottenham Court Road

London W1T 7BN


ad