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This article is about the main determinant of marriage value; the leasehold value and by extension the leasehold relativity.   In very simple terms Marriage value is equal to : A – (B+C) where A = vacant possession Value, B = freeholders current value and C = existing lease value.   As the leaseholder : A is what you end up with and C is what you start with. Both the Leasehold Reform Act 1967 (the “1967 Act”) and the Leasehold Reform Housing and Urban Development Act 1993 (the “1993 Act”) requi

Deferment rate is the annual discount applied on a compound basis to an anticipated future receipt to arrive at the market value of the freehold at the valuation date.  In recent years the deferment rate has become one of the main focal points for arguments in negotiating lease extension and collective enfranchisement claims. There have been numerous cases at the Lands Tribunal where deferment rate has become an issue. The most significant is Earl Cadogan and Cadogan Estates Limited v Sportelli (Sportell

A collective enfranchisement process is like preparing for a wedding – everything has to be brought together for the day when you complete on the freehold, and then comes the marriage, when you actually have to take responsibility for each other’s amenity in the building.  Many of the disputes which arise after the honeymoon joy of being rid of the former landlord can be avoided if they are considered and addressed in the participation agreement (“PA”), the paper which all the participants sign (or should

Buying and selling short leases is without doubt a complex business.  Notwithstanding the complexities, there are many reasons to purchase a short lease in Prime Central London, not least because it can offer buyers an investment in a secure, albeit volatile, market. THE RIGHT Under the Leasehold Reform Housing and Urban Development Act 1993 (‘the Act’) tenants of long leases are given the right to extend their leases.  The right provided for the Act is for the grant of a new lease for: An additiona

The subject of ‘relativity’ to establish current lease value has taken up many pages in LVTs and Upper Tribunal’s (UT) discussions and determinations over many years. Valuers cannot rely on previous LVT cases on their own but may seek assistance from the compendium of research compiled by a panel under a RICS banner in 2009. There is the established PCL graph of graphs but this long established research is often unhelpful in areas such as Surbiton, Southfields or Sutton (Surrey). Valuers have their own

This article focuses on three issues which appear to cause the most concern: demand requirements; time limits; and consultation. The following is a summary of recent cases that can both help and hinder landlords when considering if they have complied with their statutory obligations.  Demand Requirements In Beitov Properties Ltd v Martin [2012] UKUT 133 (LC) it was held that the requirement to give the landlord’s address in Section 47 of the Landlord and Tenant Act 1987 ("LTA 1987") is not satisfied by

Green shoots are finally appearing, with indications that the property market is moving in the right direction for the first time in over five years. However, owners of properties whose leases have fewer than 80 years unexpired must not allow this glimmer of hope to gloss over the importance of taking action to address such diminishing assets. The length of a flat’s lease affects its underlying value for a number of reasons. When a lease falls below 80 years it can be difficult to secure a mortgage for t

QUESTION Dear Sir Dear Editor, can you please advise me on the rules and regulations relating to CDM (Construction, Design and Management Regulations) Name Withheld ANSWER If you are about to alter, maintain, or extend a building or structure, thinking of putting up a new one or demolishing an existing one, then the Construction (Design and Management) Regulations 2007 place a number of specific duties on you. The extent of these varies with the type and project involved, and you may be required to a

Leasehold management in housing associations has been a Cinderella service for many years. The vast majority of our property is managed for social or affordable rents. However over the last 20 years there has been steady growth in the leasehold stock owned by HAs. The sources of this growth come from two main sources, the various shared ownership schemes and the Right to Buy (RTB). With the changes to central government funding many HAs now find that in order to continue to develop, they have to build le

Braemar Estates appointed Gabriela Boczkowska to the new role of Portfolio Data Controller. Based in Hale, Gabriela joins from the Co-operative Pharmacy division where she was responsible for developing and maintaining a data control system covering over 800 Co-op Pharmacy outlets. Braemar has a £1bn property portfolio covering some of the country’s most iconic residential assets, including Cathedral Group’s award winning Clapham One in London, Grosvenor’s One Park West in Liverpool and the high-rise Bee

Tracey Hartley, Project & Operations Manager at Grainger PLC, the UK’s largest listed residential landlord, has been seconded to the Government’s Private Rented Sector Taskforce. Tracey, a Chartered Surveyor and member of the National Association of Estate Agents, joined Grainger in 2006 after several years working in estate agency and before that at the Local Government Ombudsman.

Michael Newey has succeeded Alan Collett as President of the Royal Institution of Chartered Surveyors (RICS). Mr Newey is the group chief executive of Broadland Housing Group based in Norwich, UK, and a regular visitor to the Australian affordable housing sector since 2004. Louise Brooke-Smith will take office as the first female President Elect in RICS history, Martin Brühl becomes Senior Vice President, while Amanda Clack becomes Vice President. Mr Newey said: “I am delighted to assume the office of RI