As the best solicitors Epsom has to offer we are frequently asked to deal with leasehold extensions on property.
Extending the lease on a leasehold property is often required to make it more saleable, though it can be an expensive option for some.
The way in which the leasehold cost is calculated hasn’t changed since Victorian times and has frequently been criticised for being too much in the landlord’s favour.
A recent court case attempted to change the calculation so that different values for ‘relativity’ were used, which would have significantly reduced the cost of the leasehold for leaseholders. Unfortunately for many, this has been overturned, and landlords can continue to charge leaseholds at a cost calculated as they have always been.
The case, Mundy v the Sloane Stanley Estate, involved a small flat in Chelsea where the lease had fallen to less than 23 years. The freeholder wanted £420,000 to obtain an extension.
The freeholder is the Duke of Westminster, one of the richest men in the world and a cousin of the Queen. He owns vast swathes of the West End estate, including both retail and housing.
Leaseholders had argued that a new calculation, the Parthenia Valuation should be used, which is much fairer. However, they lost their case.
This is in spite of the fact that the Government is currently looking at making it much easier, quicker and cheaper for leaseholders to extend their lease. This is as the number of leaseholders has grown significantly in recent decades.