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Q I own a flat with less than 40 years left on the lease. I am very keen to agree a figure with the freeholder to buy an extension. We have had estimates from surveyors that range from £30,000 to £60,000. The freeholders have made it plain that they will not enter into direct negotiations with me, and I am almost into the second year of negotiations via a firm that specialises in these matters. How can I speed things up?
A The Leasehold Reform Housing and Urban Development Act 1993 gives two main rights to leaseholders. First, a majority of qualifying leaseholders have the collective right to buy the freehold of their building. Secondly, any individual long leaseholder who has owned a flat for two years has the right to an extended lease.
The procedure for exercising the individual right to a new lease is relatively straightforward. You get a specialist valuer to work out a fair price you will pay the landlord. You then serve a notice complying with Section 42(3) of the Act, which states the premium you propose to pay. The landlord must serve a counter-notice saying whether he agrees to grant the new lease or not. In the case of Willingale v Globalgrange, the Court of Appeal decided that a landlord who does not serve a counter-notice will almost always be stuck with the premium proposed in the leaseholder's notice. The new lease will be for the remaining term of the existing lease plus an extra 90 years and it will be at a peppercorn rent.
Disputes are resolved in two ways. If the landlord opposes your right to an extended lease, that will be decided by the county court. Disagreements about the price or other terms of acquisition are dealt with by the Leasehold Valuation Tribunal. The legislation also sets out what happens if the landlord cannot be traced or if he will not co-operate.
There are valuation formulae for working out the premium payable. If you have been given only vague estimates for this, it could be that your valuers are not as specialist as they make out. Check whether they appear on the Leasehold Advisory Service list of surveyors at www.lease-advice.org .
There is no reason why you should not simply serve a Section 42 notice and force the issue on the landlord.
The writer is a barrister at Tanfield Chambers. E-mail your questions to: brief.encounter@thetimes.co.uk
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