TECHNICAL BULLETIN
ISSUE 28
APRIL 2018
THE ABUSE OF
LEASEHOLD INTERESTS WHAT SHOULD A VALUER CONSIDER? CHRIS RISPIN MANAGING DIRECTOR, BLUEBOX PARTNERS
Leasehold remains the number one concern for homeowners in the UK. Recent research by DAC Beachcroft (international firm of lawyers specialising in advising the insurance industry) summarised the government’s thinking on leasehold interests following their recent consultation. Although the findings of the consultation could mean that leasehold issues will be addressed for future market activity, there seems very little that can be done by people holding an existing leasehold property. Their only avenue remains seeking legal advice on whether they were badly advised at the start of the process. While any rise in claims could stimulate work for those specialising in the valuation of leasehold interests in determining losses arising from an onerous lease term, this
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won’t resolve anything for the customer. Valuations and true market value When there are issues such as progressive movement or contaminated ground, the current response is to establish the facts before providing a valuation. This involves engaging an expert to investigate and determine whether any remedial action is required, who is responsible and at what cost. This is then used to assess the true market value. So, where does this leave someone who owns a property with a perceived (or actual) onerous term and wants to sell or re-mortgage? The RICS have been silent on this so far, leaving valuers to decide how to advise their client. Which points should a valuer consider? Points to consider
