Leasehold Enfranchisement – The Valuation of Blocks of Flats

Abstract

Considers the valuation of blocks of flats as a result of the Leasehold Reform, Housing and Urban Development Act, 1993. Qualifying residents of blocks of flats now have the collective right to acquire the freehold and intermediary interests provided procedure is followed and price is agreed. Gives a critical analysis of the rules for valuation set out in Section 32 and Schedule 6 of the Act and by use of worked examples, gives guidance on the three constituent elements of the required valuation. The valuation of the freeholders′ existing interest, the split of marriage value and the compensatory issues are all considered. As well as giving the general background to leasehold reform and enfranchisement since the Leasehold Reform Act, 1967, also considers some of the management and practical issues affecting a compulsory freehold purchase of this nature. The right of appeal to the Leasehold Valuation Tribunal and ultimately the Lands Tribunal are also considered.

Citation

Wells, A. (1994), "Leasehold Enfranchisement – The Valuation of Blocks of Flats", Journal of Property Valuation and Investment, Vol. 12 No. 1, pp. 21-28. https://doi.org/10.1108/14635789410050485