Leasehold Portfolio Management

Here are a selection of issues we are frequently asked to assist with:

Owning a flat/apartment usually means owning a lease of the property, which has a finite term of years.  Often leases are granted for 99 years or 125 years, and if they were first granted a long time ago, the numbers of years remaining might now be getting to a point which is considered low.  At some point, mortgage lenders may refuse to lend on the security of the lease.  This doesn’t just mean the property can’t be mortgaged – it means it cannot be sold easily, since a buyer will often intend to mortgage the property.

I own a freehold ground rent investment and I have been served with a Section 42 notice. Can i just ignore it?

You must take immediate action, since there are strict time limits in responding to such a notice. You might lose valuable rights by failing to respond in time. Send us a copy of the notice you have received and we will advise you what needs to be done next.

I am looking to sell my freehold ground rent investments at auction. Can I just ring the auctioneers and ask them to list them?

No. First, the auctioneers will be looking for a comprehensive legal pack, with a bespoke set of contract conditions and supporting documentation. This will be offered to any interested potential bidder in advance of the auction. We have plenty of experience in putting these together, often at very short notice. Second, you will also need to consider the impact of the Landlord and Tenant Act 1987, which gives leaseholders “the right of first refusal”. You may be obliged to offer the freehold to the leaseholders, on the same terms you achieve with the winning bidder at the auction, in preference to that winning bidder. There are strict requirements as to the serving of notice, and failure to comply can constitute a criminal offence. You should contact us well in advance of the intended auction disposal, to allow sufficient time to address these important obligations.

I am a managing agent. The management company I look after has recently acquired the freehold of the block and the leaseholders are all asking about extending their leases. What can I tell them?

We can help by setting up a group scheme of lease extensions. We will prepare documentation in a consistent form to be used in each case, consider issues of dual-representation (taking into account our professional rules) and deal with existing mortgages on the flats which will need to be transferred to the new leasehold titles.

I am interested in proceeding but need to know more.  How do I proceed?

Contact us now and we can talk you through the initial steps and give details of costs.