the role of the enfranchisement practitioner

Mark chick gives an insight into leasehold enfranchisement and explains why the right advisor is key to a successful outcome

*The key To any successful enfranchisement or lease extension is choosing the right advisor. It is important to get advice from a professional with a proven track record of acting in this area. Whether you are extending your lease, or buying your freehold there are a number of pitfalls and traps for the unwary and using an experienced practitioner can ultimately save you time and money.

lIAISoN IS THE kEy

WHEN SHould you ENgAgE A pRoFESSIoNAl?

Ideally, you should take advice as soon as you are seriously considering buying your freehold or extending your lease. Most advisors will talk to you initially about the process and provide some kind of guidance before you commit to the next step. Often this is for a fixed or nominal charge. One of the keys to a successful transaction is to make sure that the solicitor and valuer have a good working relationship. Assuming that they have worked together before, they should have no problem in recommending each others’ services. Similarly, if they have worked together before and it becomes necessary to go to the Leasehold Valuation Tribunal (the LVT), they are likely to work better as a team.

The next question you may want to ask is whether they have any experience of your particular block. While not essential, choosing a firm with experience can pay dividends as they will be able to predict with some accuracy the likely pace of the transaction and, if your landlord is difficult, they may be familiar with their tactics and be well placed to use their experience to protect your interests.

HoW do you CHooSE THE RIgHT AdvISoR? FIgHT FIRE WITH FIRE

The most important factor is to make sure that the surveyor or solicitor that you employ has experience of lease extensions and/or freehold purchases (so called ‘leasehold reform’ transactions). A good way of checking out an advisor is to see whether they are members of ALEP (the Association of Leasehold Enfranchisement Practitioners). Members of ALEP have been vetted (see details on page 47) and have to show a proven track record of a number of successfully completed projects within the last year, together with client and professional references.

If you are dealing with a Central London property on one of the larger Central London www.bishopandsewell.co.uk/ landed estates, such property/leasehold-reform/ as the Grosvenor, Cadogan, Wellcome Trust, or Church Commissioners, it makes sense to use a practitioner who is familiar with these types of titles and who deals with the landlords’ advisors in these areas on a regular basis. There are also certain other landlords such as the Crown Estate who have particular preferences and policies for dealing with claims (as they are technically exempt from the legislation) and it is important that your advisor appreciates these differences.

vAluATIoN

There are a number of excellent free calculators available on the internet - such as the one that can be found on our website at www.bishopandsewell.co.uk/lease-extension-calculator – which will help you establish the approximate cost of a lease extension on your flat. The next step, assuming that you have an idea that the transaction is within your budget, is to get a formal valuation and then proceed towards serving a notice.

WHAT IS THE RolE oF THE pRACTITIoNER IN THE pRoCESS?

A very brief summary of the roles of the solicitor and the surveyor in the lease extension process appear in the table (right).

The person responsible for each step appears in brackets as you move through the process:

Similar comments apply in relation to a freehold purchase and there is a table that sets

lEASE ExTENSIoN

step 1 surveyor obtains valuation report solicitor instructs solicitor step 2 solicitor drafts notice of claim (called a Section 42 notice) step 3 solicitor Notice is served on landlord step 4 landlord’s solicitor Landlord has a right of inspection to prepare their own valuation report and can ask for a deposit of 10% of the figure offered in the notice step 5 landlord’s solicitors Landlord serves counter notice step 6 surveyors for landlord and tenant Tenant’s valuer and landlord’s valuer commence negotiations the solicitors discuss the terms of the new lease step 7 solicitors for tenant/landlord, if the landlord chooses to apply If the valuers cannot agree a premium and/or the terms of the lease remain in dispute either side can apply to the LVT (the ‘Leasehold Valuation Tribunal’) to have the claim decided. This MUST happen within 6 months of the counter notice, or the claim is deemed to be withdrawn step 8 solicitor/ surveyor Terms are agreed or determined by the LVT step 9 solicitor The new lease is completed step 10 solicitor If either party does not comply with their obligations they can apply to the County Court to enforce the grant of the new lease or to be discharged from their obligations under the notice.

out the steps in this process that appears on our website at http://www.bishopandsewell. co.uk/property/freehold-purchase-(collectiveenfranchisement) ●

Mark chick is a solicitor specialising in landlord and tenant matters. He is head of the Landlord and Tenant Team at Bishop & Sewell LLP, a firm of solicitors based in Central London. He is also a director and committee member of ALEP (the Association of Leasehold Enfranchisement Professionals) and regularly writes and speaks on this area.

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