It is strongly recommended that the initial value is ascertained by a professional valuer or surveyor.
They should be somebody with expertise in this area.
valuer will usually provide a ball-park figure which will then be negotiated between the parties.
The value will take into account the following:
- Market Value (i.e. what the value of the property would be
as a freehold on the property market)
the Marriage Value (i.e: the value of the combination of the Leasehold and the Freehold Title)
- Compensation (i.e. a payment made for any loss or damage caused
to the Landlord by the collective enfranchisement).
calculation on Marriage Value only applies to Leases which have less than 80 years to run. Therefore, if your lease
is coming up to the 80 year period, you may well consider extending then. Please bear in mind that if you are buying
a new property, you cannot buy for 2 years. You may wish to to ask the outgoing tenant to put an application in.