Whats in a Freehold Enfranchisement Valuation?
To get your head around this you need to understand that whilst each lease is valuable to its leaseholder today, at whatever it could be sold for in the market place, each lease is also valuable to the Freeholder who • receives investment income from it (the ground rent) • has the hope value of a premium from you (for buying a lease extension) • holds the reversionary interest (the value of a vacant flat in XX years time) • probably makes commission from placing insurance on the block • may have unleashed development potential (roof spaces, rights to build over garage blocks, dis-used air raid shelters capable of development) This is a specialist area of valuation that needs some understanding as the valuation methodology involves the following elements: • Market values of the flat for flats with less than 80 years unexpired on the basis of • a short lease with ground rents payable as covenanted under the lease • a long lease with peppercorn ground rent payable • The value of the landl
