Categories:Real Estate,UK

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

Sign in

Register

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

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

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.

Briefings from Walker Morris

View more briefings from Walker Morris

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

Kings Court
12 King Street
Leeds
LS1 2HL
UK
http://www.walkermorris.co.uk

Turnover (£m): 42.50
No. of lawyers: 188

Jobs