Does enfranchisement cost same as lease extension?

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    Does enfranchisement cost same as lease extension?

    I get the impression from previous posts that there is sometimes a similar price to buy the freehold as pay a premium for a new long lease.

    I have two questions:-

    1) Are there overwhelming benefits for owning the freehold or does leasehold have some advantages.

    2) I understand (just) the formula for calculating the premium for extending/new lease, is there a similar formula to calculate the freehold?

    #2
    Originally posted by Matterless View Post
    I get the impression from previous posts that there is sometimes a similar price to buy the freehold as pay a premium for a new long lease.
    Are there overwhelming benefits for owning the freehold or does leasehold have some advantages.
    1. Houses are different from flats in this context.
    2. Lessee of house, once > 2yrs. has passed, has right to buy f/r or extend lease for 50 yrs. The latter is cheaper but worse value for money.
    3. Lessee of flat, once > 2yrs. has passed, has right to extend lease for 90 yrs. Unlike re house, this deletes the ground rent- so f/r has virtually no value thereafter.
    4. Collective lessees of all (ot at least majority) of flats in block have collective right to buy f/r for block. There is NO 2yr. qualification period.
    5. The total cost of '4' is about the total of each lessee's '3'.
    6. Come what may, each individual flat must stay leasehold. This ensures that covenants are enforceable.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Is the definition of a house - a single property with its own entrance - or is it more than that?

      Is a maisonette with separate upper and lower levels with their own entrances classed as flats, or are they two houses sharing the same freehold?

      Comment


        #4
        1. 'House' usually means a property that can be divided vertically (but not horizontally) from others.
        2. 'Flat' usually means a property that can be divided horizontally from others, whether or not vertically as well; 'maisonette' is merely a flat with other bits stuck on.
        3. In your case, each maisonette unit is a flat for conveyancing purposes.

        For text supporting this, see:
        a. section 2(1)/2(2) of Leasehold Reform Act 1967 re house; and
        b. section 101(1) of Leasehold Reform Housing and Urban Development Act 1993 re flat.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment

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