The valuation approach for houses is complicated and there are several methods of valuation one can use. You may find that the set of rules to establish which is the appropriate method of valuation is also complex. It's important to establish which is the method to be used correctly, and in most cases, it makes a large difference to the premium payable.
Our team is knowledgeable and happy to help answer questions about this speciality, so please contact us with any specific queries.
In the meantime, please see below for some of our most frequently asked questions.
Q: How long do I have to have owned my leasehold house to extend the lease or buy the freehold?
A: You need to have been the registered owner of the house for two years. In most circumstances, it does not matter whether you live there.
Q: Is my property a house?
A: For a property to be considered a house under this piece of legislation, it must be a building that can reasonably be considered a house, divided vertically from any neighbouring house. If it has been divided into flats, it doesn't matter as long as you have the lease of the entire house.
Certain buildings that contain commercial premises can qualify as a house within this definition. For instance, a lease of a building comprising a shop with a flat above may qualify for enfranchisement.
Q: Must I serve notice to extend my lease/buy the freehold?
A: No, you can make an informal approach to your landlord and if you both agree then proceed on that basis. However, beware that until an agreement is reached there is nothing to stop either side pulling out of negotiations. Therefore, serving notice at the beginning of the process, or serving it if informal negotiations are slow, is essential to protect your right and also in setting the valuation date.
If you'd like to learn more, please contact Genevieve or her team with your questions.