ALEP ENFRANCHISEMENT
ROLE
The of the enfranchisement practitioner Mark chick gives an insight into leasehold enfranchisement and
explains why the right advisor is key to a successful outcome
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The key To any successful
enfranchisement or lease extension is choosing the right advisor. It is important to get advice from a professional with a proven track record of acting in this area. Whether you are extending your lease, or buying your freehold there are a number of pitfalls and traps for the unwary and using an experienced practitioner can ultimately save you time and money.
WHEN SHould you ENgAgE A pRoFESSIoNAl?
Ideally, you should take advice as soon as you are seriously considering buying your freehold or extending your lease. Most advisors will talk to you initially about the process and provide some kind of guidance before you commit to the next step. Often this is for a fixed or nominal charge.
HoW do you CHooSE THE RIgHT AdvISoR?
lIAISoN IS THE kEy
One of the keys to a successful transaction is to make sure that the solicitor and valuer have a good working relationship. Assuming that they have worked together before, they should have no problem in recommending each others’ services. Similarly, if they have worked together before and it becomes necessary to go to the Leasehold Valuation Tribunal (the LVT), they are likely to work better as a team. The next question you may want to ask is whether they have any experience of your particular block. While not essential, choosing a firm with experience can pay dividends as they will be able to predict with some accuracy the likely pace of the transaction and, if your landlord is difficult, they may be familiar with their tactics and be well placed to use their experience to protect your interests.
vAluATIoN
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FIgHT FIRE WITH FIRE
If you are dealing with a Central London property on one of the larger Central London www.bishopandsewell.co.uk/ landed estates, such The most important facproperty/leasehold-reform/ as the Grosvenor, Cadogan, Wellcome tor is to make sure that Trust, or Church Commissioners, it makes the surveyor or solicitor that you employ has sense to use a practitioner who is familiar experience of lease extensions and/or freehold with these types of titles and who deals with purchases (so called ‘leasehold reform’ transacthe landlords’ advisors in these areas on a tions). A good way of checking out an advisor regular basis. is to see whether they are members of ALEP There are also certain other landlords such (the Association of Leasehold Enfranchisement as the Crown Estate who have particular Practitioners). Members of ALEP have been vetpreferences and policies for dealing with ted (see details on page 47) and have to show a claims (as they are technically exempt from proven track record of a number of successfully the legislation) and it is important that your completed projects within the last year, toadvisor appreciates these differences. gether with client and professional references. There are a number of excellent free calculators available on the internet - such as the one that can be found on our website at www.bishopandsewell.co.uk/lease-extension-calculator – which will help you establish the approximate cost of a lease extension on your flat. The next step, assuming that you have an idea that the transaction is within your budget, is to get a formal valuation and then proceed towards serving a notice.
lEASE ExTENSIoN
WHAT IS THE RolE oF THE pRACTITIoNER IN THE pRoCESS?
A very brief summary of the roles of the solicitor and the surveyor in the lease extension process appear in the table (right). The person responsible for each step appears in brackets as you move through the process: Similar comments apply in relation to a freehold purchase and there is a table that sets
step 8 step 9 step 10
surveyor obtains valuation report solicitor instructs solicitor solicitor drafts notice of claim (called a Section 42 notice) solicitor Notice is served on landlord landlord’s solicitor Landlord has a right of inspection to prepare their own valuation report and can ask for a deposit of 10% of the figure offered in the notice landlord’s solicitors Landlord serves counter notice surveyors for landlord and tenant Tenant’s valuer and landlord’s valuer commence negotiations the solicitors discuss the terms of the new lease solicitors for tenant/landlord, if the landlord chooses to apply If the valuers cannot agree a premium and/or the terms of the lease remain in dispute either side can apply to the LVT (the ‘Leasehold Valuation Tribunal’) to have the claim decided. This MUST happen within 6 months of the counter notice, or the claim is deemed to be withdrawn solicitor/ surveyor Terms are agreed or determined by the LVT solicitor The new lease is completed solicitor If either party does not comply with their obligations they can apply to the County Court to enforce the grant of the new lease or to be discharged from their obligations under the notice.
out the steps in this process that appears on our website at http://www.bishopandsewell. co.uk/property/freehold-purchase-(collectiveenfranchisement) ● Mark chick is a solicitor specialising in landlord and tenant matters. He is head of the Landlord and Tenant Team at Bishop & Sewell LLP, a firm of solicitors based in Central London. He is also a director and committee member of ALEP (the Association of Leasehold Enfranchisement Professionals) and regularly writes and speaks on this area.
Issue 13, Winter
Flat Living
