If you are a leaseholder of a flat or house, you may have the legal right to either extend your lease or enfranchise it, subject to certain qualifying criteria – effectively turning it into a Freehold property.
At Lea Hough Chartered Surveyors, we provide expert Valuation Services to support leaseholders and freeholders through these often-complex transactions.
What is Lease Enfranchisement?
Lease enfranchisement refers to the statutory legal process through which:
- Leaseholders of flats can collectively purchase the freehold of their building (collective enfranchisement) or,
- Leaseholders of houses may have the right to buy the freehold of their property under the Leasehold Reform Act 1967.
Both statutory processes require a professional valuation to determine a fair price for the lease extension or freehold purchase.
What is a Lease Extension?
A lease extension is an agreement between a tenant (or leaseholder) and a landlord (or freeholder) to extend the length of time remaining on a lease. It is common in residential and commercial property leases, although statutory rights apply primarily to residential leaseholders.
In Residential Property (especially in the UK):
Leaseholds are common in flats/apartments.
If a lease has fewer than 80 years remaining, it can become harder to sell and more expensive to extend.
Leaseholders typically have the right to extend the lease by 90 years (in England and Wales) under the Leasehold Reform, Housing and Urban Development Act 1993, provided they meet certain conditions.
In Commercial Property:
A lease extension may be negotiated when the current lease is nearing its end, as commercial leases do not benefit from the same statutory extension rights as residential leases.
Terms such as rent, duration, and responsibilities may be renegotiated.
Our Valuation Services
At Lea Hough, we offer Lease Enfranchisement Valuations for both leaseholders and freeholders. Our services include:
- Valuation of the premium payable to extend the lease or purchase the freehold.
- Negotiation support with the other party to help reach an agreed price.
- Advice and reports compliant with leasehold legislation.
Why a Professional Valuation is Essential
The value of the lease extension or enfranchisement will depend on several factors, including:
- The current unexpired term of the lease.
- The ground rent and rent review terms.
- The market value of the property.
- Whether “marriage value” applies.
Getting an accurate and well-supported valuation can help avoid costly disputes or overpaying for a lease extension or freehold.
Who We Work With
We act on behalf of both leaseholders looking to extend their lease or collectively buy the freehold and freeholders responding to leaseholder requests.
Get in Touch
Leasehold valuation is a highly specialist area that not all Surveyors or RICS Registered Valuers can offer.
Whether you’re just starting the process or need support in ongoing negotiations, our RICS Registered Valuers are here to help.
"*" indicates required fields
