@ Section42

Registered with Property118.com
Thursday 28th January 2016


Latest Comments

Total Number of Property118 Comments: 6

@ Section42

13:04 PM, 11th December 2017
About 2 years ago

Section 42 noticed served to previous address?

one thing to bear in mind.. the service address needs to be the address that ground rent demands are issued from under the L&T Act 1987, if this isn't the address used then perhaps there are grounds to argue that you haven't been served and therefore don't need to grant for the premium claimed. The notice should also be looked at carefully to check that it is valid in the first place.... Read More

@ Section42

10:54 AM, 11th September 2017
About 2 years ago

Should we initiate collective enfranchisement or is it too late?

It is normal for the property to proceed to auction. Provided that it meets the reserve in the room then it will be sold. If you serve the acceptance, nomination notices and a further notification within time and before the auction then you will be able to have the same rights as the eventual bidder - i.e. to buy at that price. If the property is sold elsewhere and you still want to buy you could of course use the 1993
Act to compel a sale but then the likely price is not that likely to be less that it was sold for at auction!... Read More

@ Section42

9:59 AM, 17th July 2017
About 2 years ago

First time leasehold extension advice

Just to confirm - as you have identified you cannot grant a lease to yourself - you will need to appoint another party as well (even if that is in a nominee capacity - i.e. that they don't have any ownership rights) - it will probably be easiest to transfer the freehold into two names / add another name if there is no mortgage on that as a transfer of a flat subject to mortgage needs the lender's say so and a deed of substituted security. As the other contributor has mentioned if you do want to retain the FH in the future (and sell the flats separately) you could make the leases shorter - enough to be mortgageable but short enough to add value to the 'reversion' (the FH) in say 30-40 years' time when they get back down to 80 years.... Read More

@ Section42

9:46 AM, 10th July 2017
About 2 years ago

First time leasehold extension advice

Just a couple of thoughts on this. Firstly the lease term - suggest that you make this 999 years with a peppercorn ground rent - thereby transferring all of the value back from the Freehold to the leasehold interests. Secondly, you may need to consider the capital tax position - a disposal out of the freehold can be seen as conferring a benefit - this may be circular if the freeholder and leaseholders are the same people but we have seen situations where this has been left a long time and the FH is in the name of a company. When this happens the company (and the individual) can end up with an unexpected capital tax liability.... Read More

@ Section42

10:35 AM, 28th January 2016
About 3 years ago

Inherited Freehold situation

IF you own the freehold but are selling a lease extension one flat (who does not own a share in the freehold) then this does affect value as you are transferring value out of the freehold to the flat owner on the sale of the lease extension.
Once you have done that the freehold still has value but (if all the other leases are extended - and presumably you are not going to charge yourself to do this) then once they are 'long' 999 or similar then there is little residual value left in the freehold *(unless there is other development potential)
The other thing to think about is tax - as if you have left it a long time before extending the leases then there is a risk that there could be a charge to CGT on the disposal when you extend your own leases - even though you own the shares in the company. This does depend on the values etc ... Read More