Meanwhile, there may be many flat owners whose leases need topping up in order to sell or remortgage. Such people must weigh up whether to proceed now or await the commencement of the new Act's provisions. Under existing law, if agreement is not reached for the sum to be paid for a lease extension the matter will be decided by the local leasehold valuation tribunal. The valuation will be calculated on the hearing date so a landlord who delays may benefit as the price usually increases as the lease reduces and as property values rise. The local leasehold valuation tribunal may not take place for up to six months from the date of application.
However, under the new law a valuation will be calculated from the date when a notice of claim is served so any delay in a hearing will be inconsequential for the flat owner.
Generally, in the case of applications for lease extensions where similar leases in a block of flats are concerned, collective action can save costs particularly if one firm of solicitors and surveyors is engaged to act for all residents.
An additional reason for claiming an extension of lease may be one where elderly flat owners wish to take advantage of an equity release scheme to enhance income and provide a capital sum but the fund provider requires a longer lease.
This brief article does not attempt to explain all the changes in the law by the 2002 Act. In all cases competent professional advice should be sought.
