ALEPENFRANCHISEMENT
advice fromaprofessionalwithaproventrack record of acting in this area.Whether youare extendingyourlease,orbuyingyourfreehold there are a number of pitfalls and traps for the unwary andusing an experiencedpractitioner can ultimately save you timeandmoney.
WHEN SHould you
ENgAgE A pRoFESSIoNAl? Ideally, youshouldtakeadviceassoonasyou are seriously consider- ingbuyingyourfreehold or extendingyourlease. Most advisors will talk to youinitially aboutthe processand providesome kind of guidance before youcommittothe next step.Often this is fora fixed ornominal charge.
HoWdoyou CHooSE THERIgHT
AdvISoR? Themostimportant fac- toristomakesurethat the surveyor or solicitor that youemploy has experience of leaseextensionsand/orfreehold purchases (so called ‘leasehold reform’ transac- tions).Agoodway of checking out an advisor is to seewhether they aremembers ofALEP (the Associationof Leasehold Enfranchisement Practitioners).Members ofALEP have beenvet- ted (see details on page 47) and have to showa proven track record of a number of successfully completed projects within the last year, to- gether with client andprofessionalreferences.
www.bishopandsewell.co.uk/ property/leasehold-reform/
enfranchisementpractitioner *
TheROLEof the
Mark chick givesaninsight into leaseholdenfranchisement and explainswhy the right advisor is key to a successful outcome
ThekeyToanysuccessful
enfranchisement or lease extension is choosing the right advisor. It is important to get
lIAISoNISTHE kEy Oneofthe keys to asuccessful transaction is tomake sure that thesolicitor andvaluerhave agood workingrelationship. Assuming that they have worked together before,theyshould have no problemin recommending each oth- ers’
services.Similarly,iftheyhaveworked together before anditbecomes necessary to go to theLeaseholdValuation Tribunal (the LVT), they arelikelytoworkbetterasateam. Thenextquestionyoumaywanttoask is
whethertheyhaveany experience of your particular block.While not essential, choosing afirmwith experience canpay dividendsas they will be able to predict with someaccuracy thelikelypaceofthe transaction and, if your landlord is difficult, theymaybefamiliar with theirtactics andbe well placed to usetheir experience to protect your interests.
FIgHTFIRE
WITH FIRE If youare dealing with aCentral London property on one of the larger CentralLondon landed estates, such as theGrosvenor, Cadogan,Wellcome
Trust, or Church Commissioners, itmakes sensetouse apractitionerwho is familiar with thesetypes of titles andwho dealswith thelandlords’ advisors in theseareas on a regular basis. Thereare also certain otherlandlordssuch
as theCrownEstatewhohaveparticular preferences andpoliciesfor dealing with claims(as they aretechnically exempt from thelegislation)and it is importantthatyour advisor appreciates these differences.
vAluATIoN There are a number of excellent free calcula- tors available on the internet - such as the one that can be found on our website
atwww.bish-
opandsewell.co.uk/lease-extension-calculator –which will help you establish the approxi- mate cost of alease
extensiononyourflat.The next step,assuming that youhaveanideathat thetransaction is within your budget,istoget aformalvaluation andthenproceed towards serving a notice.
48
WHATISTHE RolE oF THE pRACTITIoNER
IN THE pRoCESS? A very brief summary of the roles of the solici- torand thesurveyorinthe leaseextension processappearinthe table(right). The person responsible for each step appears
in brackets as youmove through the process: Similarcommentsapply in relation to a freehold purchase and there is a table that sets
lEASEExTENSIoN
step1surveyor obtains valuationreport solicitor instructs solicitor
step2solicitor draftsnotice of claim(calledaSection42notice)
step3solicitorNotice is servedon landlord
step4landlord’ssolicitor Landlordhasaright of inspectionto preparetheirownvaluationreport andcanaskforadeposit of 10%of thefigureoffered in thenotice
step5landlord’ssolicitors Landlord serves counternotice
step6surveyors for landlord andtenant Tenant’s valuerandlandlord’s valuer commencenegotiations - thesolicitors discuss theterms of thenewlease
step7solicitorsfor tenant/landlord, if thelandlord chooses to apply If thevaluers cannot agreea premiumand/or theterms of the leaseremain in disputeeither side canapply to theLVT(the‘Leasehold ValuationTribunal’) tohave the claimdecided.
ThisMUSThappenwithin6months of thecounternotice, or theclaimis deemed to be withdrawn
step8solicitor/surveyor Terms are agreed or determined by theLVT
step9solicitor Thenewleaseis completed
step10 solicitor If either partydoesnot comply with theirobligations they canapply to theCountyCourt toenforcethe grant of thenewleaseor to be discharged fromtheir obligations underthenotice.
outthe stepsinthisprocessthatappears on our website at
http://www.bishopandsewell.
co.uk/property/freehold-purchase-(collective- enfranchisement)●
Mark chick isasolicitorspecialisingin landlordandtenant matters.Heisheadof theLandlordandTenantTeamat Bishop&SewellLLP,afirmofsolicitorsbasedinCentral London.Heisalsoadirectorandcommitteemember of ALEP(theAssociationofLeaseholdEnfranchisement Professionals)andregularlywritesandspeaksonthis area.
Issue 13, Winter Flat Living
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