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RENT REVIEWS

Flat leases are usually subject to a ground rent which is subject to an increase or review. This might be fixed incremental increases, for example £100 per annum doubling every 25 years. In other cases, the ground rent review is based upon a “formula” such as a percentage of value of the flat or of the whole building. In such circumstances the level of ground rent payable can jump significantly from a nominal amount to several thousand pounds. We act for tenants and landlords in valuing the appropriate level of rent and subsequent negotiations.

“Fair” rent reviews (Rent Act 1977)

Residential tenancies held under the Rent Act 1977 afford security of tenure to the tenant. Such tenancies are often referred to as “sitting tenants”. The rent can be reassessed in accordance with a statutory formula and is subject to capping. This is known as a “fair rent”. We provide valuation advice to landlords and tenants regarding the reassessment of the “fair rent”.


Rights of first refusal

When a freeholder of a block of flats wishes to sell their interest, subject to a legal procedure under the Landlord & Tenant Act 1987, the freeholder must first offer their interest to the flat owners (rights of pre-emption). Our team is available to provide valuation advice.


Licences and consents

A flat owner may wish to acquire additional areas outside the demise of their lease, typically the roof space above the flat. We will consider the proposed end use, cost of works and profit element and provide valuation guidance in respect of the appropriate price to be paid for such areas.