Collective enfranchisement and landlord seeking to retained a demised garden

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    Collective enfranchisement and landlord seeking to retained a demised garden

    Hi all

    I've got an interesting leaseholdf enfranchisement question which involves a landlord who may be potentially 'trying it on'.

    The situation is that we (The 2 leaseholders for a 30's terrace (ground floor and 1st floor flats) are in process of collective enfranchisement). Our lease have 95 years (ground floor) and 168 years (first floor) left to run and the first floor flat is at a peppercorn ground rent (as the lease has previously been extended).

    The leaseholder for the ground floor flat has sole use of the garden and this speciflaly demised in the lease. The loft space is not demised to the first floor freeholder. The Front garden is also demised to the ground floor flat except for the pathway to the front door which both leases have easments/access for.

    The landlord in his counter notice has agreed a pretty reasonable premium for the freehold but seeks to retain both the front and the rear gardens on the babsis that he woulddoffer a lease for these on exisiting terms, and by doing so, would carry over the current clause in both leases in these teams which specifically prohibits any structural alterations, chnages in internal layout or additions to the leasehold properties.

    My questions are:
    1. Does the landlord have any basis in law for this as the gardens are specifically demised to the ground floor flat?

    2. Can the landlord insist on applying any restrictive covenents/clauses in the leases to the freehold when transferred? The landlord current holds the freehold for the terrace next door which has also been converted into to flats. The lanlord has stated in correpsondece that he seeks to do this and has to right to do so as preventing any future alterations or devlopement would materially ehance the value of his interest in the freehold for the neighbouring property.

    The landlord has also stated that if we want the gardens included in the enfranchisement and no retrcive covenants applied then he is willing to do so provided we are willing to pay a premium to relect the development value of joing the freehold and leasehold interests with no convenets restrictions and then being able to devlope the property through a kitchen extension and/or loft extenstion. Planning permission exists(and is still current) from the previous ground floor leaseholder for a 'modest' 3mex3m rear kitchen extension.

    My further questions are:

    4. Does the landlord have grounds for compensationf or the loss of this devlopement value? The property is in an upcoming area and rear extensions and lofts are pretty popular. A kitchen extension is likely to increase the value (on top of the freehold) by roughly 40-50k, less development costs (approx 30k). There is no rear or other access to the garden than through the ground floor flat.

    5. If there is devlopment value, would this be then added to the value of the leasehold interest at the end of the lease term (95 years) and then discounted to get the present value? Or would the landlord be entilted to a premium based on when any development is judged likely to be done (to reflect the fact he could charge a premium amount based on grant a license to alter)? Word in the area is that the landlord usually charges a £10k premium for a kitchen extension and £20k for a loft.

    Our solicitor (and valuer - FRICS) who appear pretty decent and know the area reckon the landord is trying it on on all fronts. As I've been a bit of a lurker on this forum for a while, I thought I'd put the question out there and see what people's thoughts are.

    Thanks and cheers.

    #2
    I think you should rely on your advisor who has the full facts.

    I have views but really they are not helpful if you have an advisor with the documents before him/her.
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

    Comment


      #3
      Reply

      Thats a good point and thanks for your reply. And to be honest, I'm expecting that we'll have to come to some sort of reasonable agreement, as its very early days yet. but it would be interesting to hear your thoughts if you have an opinion.

      Cheers

      Comment


        #4
        The problem, as leaseholdanswers explained, is that we cannot form a view without knowing everything about your flat/garden/title deeds. Sorry!
        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).

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