News

Lease Extension Case Goes to Full Hearing

Park Homes Update - Lease Extension

Partner Tim Selley has just successfully concluded for leaseholder clients a “lease extension” case that unusually went to a full hearing.

In the case, the freeholder at the outset had sought a payment in return for the extended lease of £125,000.  Tim represented his clients at the hearing along with a Chartered Surveyor David Linnell who gave expert evidence  The Tribunal assessed the sum to be paid as £71,700.

Tim says “The case went as far as the hearing due to the wide difference of opinion as to the price to be paid.  The case was unusual in that the remaining existing lease term was only about 12 years. Normally lease owners do, and should, look to extend their lease when there is far longer to run.  Indeed there is a real attraction in trying to do this before the remaining term dips below 80 years as when that happens there is a big increase in the cost.  Furthermore, if a buyer wants a mortgage, it gets more difficult to get a loan and so this can make it more difficult for the seller to find a buyer at a good price.  Also in this case the Tribunal had to decide how to value a lease of a flat in Budleigh. Reported cases concern flats in London or the home counties. The valuer for the freeholder was placing reliance on information from these areas and the Tribunal agreed with us that these figures distorted (to the freeholder’s advantage) what was a fair price my clients to have to pay.”

We at Crosse + Crosse handle a number of lease extension cases and other linked matters such as “collective enfranchisement” (where flat owners get together to take over the freehold) or cases where leaseholders take control of management.  We are happy to help on the legal aspects and can also put you in touch with valuers who are experienced in this area of work, or firms who may well be able to help with management at a competitive price.  If you are interested please contact Tim or his colleague Zoe Tibbles on 01392 678694  or This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.">.

 

 

 

 

 

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