Page 4 - freehold_enfranchisement

A step by step guide to buying the Freehold of your block 3

Our valuation report includes a full commentary on:

• comparable evidence to support our opinions;
• analysis of how we select the investment yield;
• recent court decisions regarding marriage value (the difference in value between
a short lease and a ‘virtual’ freehold)
• advice on what you should serve as the price on your initial notice

What happens where there is an intermediate landlord
Where due to an intermediate interest such as a head lease, we are legally obliged to consider a
number of additional valuation factors. These include situations where an intermediate interest
receives a profit in ground rent or has a reversionary interest of more than five days. In this case,
flats may have to be valued as wasting assets which would require a sinking fund and tax to be
allowed for. Valuing an intermediate interest adds to our standard fee structures.

Our fees reflect the amount of research necessary to fulfil the valuation methodology set down
in law and to enable us to provide you with not only a valuation but also an explanation of our
calculations. This allows us to determine the final valuation premium that should be paid.

Where development rights are considered complex and involve liaison with architects, carrying
out planning research, research as to build costs etc, then a supplemental fee will be payable on
a time basis. An indication will be provided to you prior to proceeding with such additional work.

The leaseholder claiming his rights is the party that in law is responsible for both –parties’ costs
and if the residents have served notice then the landlord's surveyor’s fees form part of the
purchase price together with reasonable legal fees.

Step 2 – Serving the notice

Should I serve a notice or open informal discussions?
This is a difficult question to answer!

Some freeholders will refuse to entertain discussions without a formal notice.
From the freeholder’s perspective, without formal notice he/she is at risk for fees to cover
professional advice they need to negotiate with you.

www.leaseholdguidance.co.uk Solicitors | Surveyors | Accountants | Property Managers

Tel: 0207 428 1977 Presented by the Ringley Group