To advise the leaseholders of 9 flats on buying the freehold of their property.
This was a complex scenario that included commercial premises and retained areas of the common parts, which the landlord had enclosed and made into illegal residential accommodation (converted without having fulfilled the necessary planning and building controls consents).
It took until February for the Leaseholders to resolve to commit to take valuation advice at which time they instructed Ringley (also the owners of the Leasehold Guidance Service) to carry out a valuation.
This valuation included assessment of the market rental value of the commercial premises and their capital value.
The valuation was made more complex since some flats were not participating, which had to be taken into account when determining the marriage value. With access to the areas of the common parts enclosed by the landlord we had to use HM Land Registry plans and measurement of other parts of the building to assess the value of the land enclosed. The intention was to either dispossess the landlord of this area delivering future investment income to the, or to sell the statue on a sale and lease situation in the same way.
After the meeting the residents wrote:
"Many thanks for sorting out this complex problem for us. Yor report was thorough and indispensable to our campaign for the freehold of Amersham House. Thank you."
In this case there were two flats with 73 year leases to enfranchise under the Leasehold Reform, Housing and Urban Development Act 1993 as amended. We valued for the leading Leaseholder the likely premium for extending her lease and also the premium to enfranchise.
Our valuation was £14,500. The Freeholders at £21,500 plus £2,000 costs we eventually negotiated an all in settlement at £18,500.