Various Acts of Parliament, most notably the Leasehold Reform Act 1967 (for houses) and the Leasehold Reform, Housing and Urban Development Act 1993 (for flats), have given lessees the legal right to either buy the freehold of their building or, in the case of flats, to extend their lease.

Some of the major benefits of this right are:

1. It arrests the increasing natural depreciation in value of the leasehold interest in a flat or house, especially those that have leases with only a short period remaining.
2. Lending institutions are far more relaxed nowadays about providing loans on shorter lease property.
3. Freeholds and properties with long leases are much easier to market than those with shorter leases, especially if the market at the time of sale is less good.

Although qualifications for this right were greatly simplified in 2002, the calculation and negotiation of the freehold price/lease extension premium can be complicated. Our Professional Services Department can provide expert advice to clients regarding the costs of enfranchisement or lease extension, as well as carrying out subsequent negotiations to a successful conclusion.

For further information contact