Leasehold enfranchisement / extension advice and recommendations

wing.nut007

Good afternoon I am looking for any advice and possible solicitor / valuer recommendations (I am in Berkshire but am aware a lot of providers work nationally) to help me with a leasehold extension. 

The property is a 2 bedroom Maisonette with just over 82 years left on the lease hence looking to start the process now.  The leasehold is held along with a batch of others in the row by what it appears is a company that specialises in buying leaseholds and then trying to extract "income / value" from them. 

I am anticipating the process will be both stressful and difficult based upon the experiences of other leaseholders in the block who have already had to renew (our property had a lease extension negotiation around 5 years after if was built in 1976).  The freeholders are renowned for making ludicrous valuations and making the process as difficult as possible. Most people seem to have settled for paying quite a bit more than the leasehold advisory service suggest I am therefore anticipating ours will be no different so am looking for advice for these types of situations, advice on finding the correct solicitor / valuer for the job or others users recommendations if they have experienced similar and felt their choice of solicitor / valuers worked well.  I should there is no prospect of jointly negotiating as most have already done so / aren't interested. Everyone was given the option to purchase the leaseholds maybe 10 or so years ago (before we bought ours) and I suspect many have or will regret not doing so as they have or potentially will pay several times the amount they were offered to them at in lease extensions. 

Whilst my own legal fees are a factor in the decision I am aware that in the grand scheme of things, leasehold extension cost, me being liable for the freeholders fee's which I suspect will be inflated, therefore I feel in the long run someone that "knows the ropes" and the tricks of the trade will most likely work out to be better value over the course of the process. 

princeofpounds

Any professional solicitor with experience in lease extensions (you are not going to be able to enfranchise if your fellow leaseholders are not organised or engaged enough) would be able to help you. There aren't that many ropes to learn these days. Just ask them how they deal with inflated demands, fees and dragging timescales from a freeholder. Also ask for a quote for both a negotiated lease extension and going through the whole tribunal process if necessary.

It does not need to be a stressful process if you can ignore the silly demands - ultimately you can always fall back on the outcome from a tribunal - but it can drag on. 

The dance is often the same - you make an extension request. The freeholder sends you a ridiculous offer. You counter-offer, pointing out what an extension through the statutory process would approximately cost. The freeholder responds with another offer, which is probably still more than a statutory valuation but has the advantages of lower legal fees and better speed. You settle and process the extension.

If you're at just over 82 years, don't delay too long. 

amylan

Yes your concerns are certainly valid and I would consider your battle plan ahead of time to save money and time. I have been through a large number of short lease extensions and do know the ropes well in this area, so if you have any specific questions, feel free to ask.

Some specific points to considers:

Formal v informal lease extension process - Given you're at 82 years, I personally would kick off through the formal process to avoid the freeholder dragging their feet and trying to get you through the marriage value 80 year threshold and therefore increase your premium. Also in the current market, I have seen freeholders start the non statutory process and change their mind in an attempt to delay matters (so as to move premiums into the next financial year). Indeed I understand that a formal vs informal extension has a different tax treatment for the freeholder - capital gain vs trading profit. All worth considering since you have mentioned it is a true corporate freeholder you're dealing with rather than one of the landed estates.

When it comes to valuers, this is often a crucial individual to assist with the negotiations and sometimes helps to keep the freeholder in check as well as being a useful sounding board along the way. There is some practical information on short lease surveyors down the page here -  https://ldn-properties.co.uk/short-lease/short-lease-extension-valuer/  and LEASE (Leasehold Advisory Service) / ALEP have details of accredited surveyors that you can search geographically. Would try to find someone local.

As for solicitors - would strongly suggest looking to LEASE / ALEP for one of their accreted practitioners. Many solicitors claim to know the enfranchisement process but few truly do, especially if you are looking for a sounding board along the way.