Your rights as a leaseholder are set out in the following legislation: The Leaseholder Reform, Housing and Urban Development Act 1993, amended by the Commonhold and Leasehold Reform Act 2002.

In addition to extending the lease, a group of leaseholders has the right to purchase the freehold of their property as long as certain conditions are met.

Firstly the building must contain at least 2 flats, the original lease has to be greater than 21 years and at least half the leaseholders must participate. Purchase is not possible if the freeholder lives in the building which was originally converted by the freeholder and if there are less than 5 flats.

Please note that the leaseholder does not have to be the resident and that up to 25% of the building floor area may be put to non-residential use. 

The cost of buying the freehold is based on an assessment made in three parts: capitalised value of the ground rent, the value of the freeholder's reversion at the end of the lease and half the marriage value.

Marriage value is the increase in value when the freehold and leasehold interests are combined or 'married' together.

To go about buying the freehold, leaseholders form a 'right to enfranchise' company and a solicitor serves notice on the freeholder making a monetary offer for the freehold. The freeholder either accepts or serves a counter notice giving his asking price. The two parties then negotiate the price.

If this fails then either side can apply to the Leasehold Valuation Tribunal who will determine a price. Here at Barnes Kirkwood and Woolf we have been successfully providing an honest and reliable service since our establishment in 1924.

We can assess the price following an inspection of the property and lease documents. We can then negotiate a price with the freeholders on your behalf. Barnes Kirkwood and Woolf have considerable experience in representing leaseholders at tribunal.