Some thoughts on the current residential market by Justin Bennett. Director of Langley Byers Bennett and Leasehold Enfranchisement specialist.
The Land Registry and the major mortgage lending institutions have recently announced the seventh monthly increase in house prices. Fixed price mortgage interest rates have also declined. In contrast, Barclays Bank has suggested that interest rates will rise to 6.5% by 2015. The other banks are seemingly supporting this view, albeit not necessarily to the same level nor with the same pattern to the predicted rises in base rate.
With this in mind it is more necessary for leaseholders to consider the cost of extending their leases (by 90 years) or enfranchising (buying their freeholds) whilst mortgage rates are low and values have not risen excessively. There is the further potential benefit to be gained from a recent Lands Tribunal decision on flats in Kelton Court, Edgbaston [LRA/97/2008]. This decision, in contrast to the then well publicised Sportelli cases in prime central London (2006-2008), offers hope for leaseholders of lower premiums in the future.
Proper professional advice is needed in what is a complex matter and you should speak to either a surveyor or solicitor. Further helpful information can be found at http://www.leaseholdenfranchisement.co.uk/ and http://lease-extension.com/
