Acquiring The Freehold To Your House

WHAT IS THE RIGHT?
The Leasehold Reform Act 1967 gives the leaseholder of a leasehold house who fulfils certain rules of qualification the right to acquire the freehold and any intermediate leases.

HOW DO I QUALIFY?
The lease must comprise the whole of the house and it must be a long lease, i.e., a lease with an original term of more than 21 years. The leaseholder must have owned the lease of the house for a period of at least two years before the date of the claim.

THE PRICE
The valuation criteria will include the capitalised value of the landlord’s ground rent and the value of his return.

HOW DO I CLAIM?
When supported by expert professional advice. The procedure for a claim is relatively straightforward.

The leaseholder serves his notice of claim, and the landlord is likely to respond with a procedural notice requiring payment of a deposit. The landlord’s valuer is also likely to inspect the house for the purpose of carrying out a valuation.

DISPUTES
If the claim is admitted and either the terms of the conveyance or the price remain in dispute after two months following the date of the notice of claim, then either party can apply to the leasehold valuation tribunal for the matter in dispute to be determined.

COMPLETION
Once the terms of the conveyance and the purchase price have been agreed or determined by the leasehold valuation tribunal, the matter reverts to a conveyancing transaction with the parties proceeding to completion.

THE EXTENDED LEASE OPTION
The 1967 Act also allows the qualifying leaseholder of a house to take an extended lease of the house for a term of 50 years to expire after the term date of the existing lease at a new ground rent throughout the extended term and without payment of a premium.