Landlord and Tenant
We have an experienced team of surveyors that have obtained many years of experience advising in respect of landlord and tenant matters.
We act for either Landlords or Tenants.
Establishing the market rent effective at the relevant review date can be a complex task and specialist advice is essential to ensure the best possible result. We maintain a database of all our transactions providing us with a comprehensive source of information which enables us to provide the best advice to our clients. The main lease clauses that may affect the rent include repairing, user, alienation, 1954 Act Protection, alterations or improvements, arbitrator or expert and break clauses. The content of the rent review clause and the assumed lease term may also have an effect upon the level of rent payable.
We recommend that both Landlord and Tenant seek professional advice relating to the terms of a new lease as early as a year before the renewal date.
The rights of both the Landlord and Tenant are very important at the end of the lease. Understanding the main issues and local market together with the negotiating positions of each side are vital to the lease renewal process. We liaise closely with our client’s solicitors to provide advice, and we involve our Chartered Building Surveyors to handle any dilapidation matters where appropriate.
Lease Extensions and Enfranchisement
A lease is a wasting asset. As the term reduces so does its value, and as the unexpired term gets shorter the effect on value increases, as does the cost of the premium.
Lessees have the right to extend the lease of their flat or to collectively acquire the freehold of their building within which their flat lies under the Leasehold Reform Housing and Urban Development Act 1993, subject to necessary qualification.
The 1967 Leasehold Reform Act allows qualifying house owners, who hold leasehold titles, to acquire their freehold or a 50 year lease extension.
Leaseholders of flats are entitled to a new lease for a term of 90 years plus the existing unexpired term at a peppercorn (nil) ground rent in return for which you pay a premium.
The premium represents compensation to the freeholder for his losses. These are:
- The capitalised loss of ground rent
- The value of the property deferred to the end of the term
- The freeholders share of any marriage value (if your lease has less than 80 years left)
Marriage value is in simple terms the difference in value between your property with its existing lease and once you have a new long lease or share of freehold. The difference is shared equally between freeholder and lessee.
At Hindwoods we act for both landlords and tenants and so we know the arguments from both sides of the fence. We provide both the initial valuation to help you understand the likely cost and enable Notice to be served and also negotiation with the lessor or lessee including attendance at Tribunal where necessary. If you would like an informal chat or further information please get in touch.