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Lease Extension

David Court, 1044-1046 High Road, Whetstone, London N20 0QR


Client

Individual Lessees

Property

12 Self-contained flats

Project Summary

Strettons were instructed to advise, initially, the lessees of 12 flats as to the premium payable for a collective enfranchisement under several scenarios, including where either 6 or 11 flats participated.

Having provided a report to the clients on the various scenarios, a number of the lessees decided not to proceed.  Following this, some of the lessees decided to go ahead with individual lease extensions.

Strettons then advised them as to how much individual lease extensions would be and liaised with their solicitor over the serving of initial Notices.  Once a counter-notices were received, Strettons then negotiated on the premium while advising the clients as to their options.

Finally, lease extensions were agreed for 4 properties, not on a statutory basis of an additional 90 years at a peppercorn ground rent, even though the statutory process had been started, but at lower premiums subject to the payment of a ground rent.  Often either agreeing shorter terms or the payment of a ground rent can be a viable method of alternative, particularly for a lessee, who either does not wish to pay the full price and costs or as is more often the case, is hoping to sell.  Lessees have no right to insist on either less than an additional 90 years or the payment of a ground rent (and for that matter neither do freeholders), but often such cases can be agreed.

On receipt of instructions to proceed the client’s solicitor was instructed to complete the lease extensions which were finalised in mid-2016.

For each of the lessees, this means that they have added value to their home and made any sales process simpler as they can now sell their flats with more desirable leases.

Geneviève Mariner

020 8509 4432
genevieve.mariner@strettons.co.uk