Valuation of intermediate leases on a collective enfranchisement
The Court of Appeal has clarified whether potential development value should be taken into account where there are intermediate leases between the freeholder and the nominated purchaser for participating tenants seeking to exercise their right to collective enfranchisement.
Proprietors of leasehold residential property will be well aware that in some areas, London in particular, it can be very difficult to sell a residential property, be it a house or a flat, with a medium or short lease. In such circumstances, consideration may be given to leasehold enfranchisement. The Leasehold Reform Housing and Urban Development Act 1993 allows leaseholders of flats to collectively purchase the freehold of their building (i.e. a collective enfranchisement) or to extend the terms of their individual leases by 90 years.
Property investors and landlords faced with a collective enfranchisement will wish to extract the maximum value from the leaseholders who exercise the right. Valuation of the interest being acquired was the issue in the recent Court of Appeal decision in Cravecrest Ltd v Trustees of the Will of the Second Duke of Westminster and another…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Also: spouses’ rights, and the meaning of ’acting by the receivers’.
There has been a raft of recent cases where the Health and Safety Executive has successfully prosecuted individuals and firms who have permitted staff and others to suffer injury while working at height.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.