LEASEHOLD VALUATIONS
LEASEHOLD VALUATIONS
what they are and when you need one
A leasehold valuation works out the premium payable when a leaseholder extends their lease or buys the freehold. It is the figure a lease extension or freehold purchase is built around.
Most people need one in one of two situations. The first is a lease extension, where a flat owner adds years to a lease that is running down. The second is buying the freehold, either on your own where the law allows it or jointly with other leaseholders in the building, which is known as collective enfranchisement.
Novello no longer carries out leasehold or freehold valuations and is not taking new instructions for this work. For details of firms that can help, please use RICS find a surveyor tool
EXTENDING YOUR LEASE
A leaseholder can extend through one of two routes. The statutory route follows the process set out in law and gives you defined rights, including a set basis for working out the premium. The informal route is a private agreement with the freeholder, where the terms and the price are negotiated directly and can vary widely. A surveyor values the premium under either route and can negotiate on your behalf.
BUYING THE FREEHOLD
Leaseholders can also buy the freehold of their building. In a block of flats this is usually done jointly, a process known as collective enfranchisement, with the leaseholders taking over ownership of the building and control of how it is managed. The valuation sets the price payable to the current freeholder, and a surveyor can handle the negotiation that follows.