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CONTENTS_

3About us

6-11Lease Extension

12-15Collective Enfranchisement

18-19Professional Valuation

21Litigation & Expert Witness

23Investment & Development Consultancy

24Building Surveying

Blakes Chartered Valuation Surveyors

An innovative firm of Chartered Surveyors & RICS Registered valuers offering professional, client focused and strategic property valuation advice to a range of private and corporate clientele, law firms and financial institutions across London

We have particular expertise in Leasehold Reform Act work and represent both leaseholders and freeholders in respect of voluntary and statutory lease extension claims as well as collective enfranchisement (freehold purchase). We also offer formal valuation advice, compliant with RICS International Valuation Standards for a variety of other purposes including probate, inheritance tax, capital gains tax, company accounts, matrimonial and charities commission.

In formal disputes and litigation our surveyors are able to act as Expert Witness on property valuation matters having previously given evidence on behalf of clients before the First Tier Tribunal (formerly known as the Leasehold Valuation Tribunal), County Court and High Court ensuring strict adherence to Civil Procedure Rules. Blakes Chartered Surveyors are members of and regulated as a practice by the Royal Institution of Chartered Surveyors (RICS).

We are also members of the Association of Leasehold Enfranchisement Practitioners (ALEP)and registered practitioners on the government sponsored Leasehold Advisory Service.

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Understanding your objectives in order to provide clear, strategic and practical property advice.

Blakes have carried out numerous valuations and lettings for our various residential and commercial properties. I have found the service swift, professional and very in tune with current market conditions to achieve best outcomes. They are helpful and the extra attention to detail ensures things progress smoothly. I would highly recommend talking to

Blakes for any property related query.

Dr Krishnan Satkunam.MD, Krinvest Care Group.

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LEASE EXTENSION(Statutory & Voluntary)

Why Extend my Lease?A lease is effectively a right to use a property for a given period of time. As the lease term falls in, the value of the lease decreases and the cost of extending it increases. Obtaining a lease extension will protect and indeed enhance the value of your property immediately.

As buyers become more informed about the impact of lease length on property values it is becoming increasingly difficult to secure sales on flats with shorter lease terms due to the often high and uncertain costs of obtaining an extension. Most mortgage lenders have tightened lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are deemed to be inadequate security.

The cost of extending your lease depends on many factors including its current unexpired term, ‘long lease’ value, the amount and pattern of ground rent payable, location and type of building.

The premium payable for extending a lease becomes significantly higher once the lease term falls below 80 years and this is due to additional compensation being payable to the freeholder which is known as ‘marriage value’. If you are a leaseholder it is therefore highly advisable to act before the lease term falls below this important threshold.

Whether you are a leaseholder considering extending your lease or perhaps a freeholder that has received a statutory notice of claim, we are able to provide detailed guidance on the process and issues involved as well provide you with accurate and strategic valuation advice in order to secure the best possible terms by utilising the provisions within the Leasehold Reform Housing and Development Act 1993 (as Amended).

Blakes offer a comprehensive lease extension service for both leaseholders and freeholders and can coordinate the entire process on your behalf from inception to completion.

Do I Qualify?If you have owned your flat for at least two years (you do not need to have occupied the property) and the lease was originally granted for a term exceeding 21 years then you will qualify for what is known as a ‘Statutory Lease Extension’. In return for an appropriate ‘premium’ payable to the landlord this legally entitles you to claim a 90 year extension in addition to the current unexpired term and also allows for the ground rent to be reduced to a ‘Peppercorn’ (NIL) for the entire lease term.

For example if your lease has 65 years unexpired and you are contracted to pay the freeholder a ground rent of £250 per annum, following completion of a statutory lease extension the lease will be extended to 155 years and no ground rent will be payable at all for the entire term. Your lease will otherwise remain on the same terms as the original although any defective terms can be rectified and modernised to ensure that it conforms to the CML (Council of Mortgage Lenders) requirements.

If you haven’t owned your flat for 2 years we may still be able to assist you by approaching the landlord on your behalf to establish whether reasonable voluntary terms can be agreed.

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In all other cases, an inspection of the property is carried out in order to take detailed measurements, a floor plan and photographs. If you do not have access to your lease or other legal documents we can retrieve these on your behalf from Land Registry, the cost of which is nominal.

We will then prepare a full valuation report with our professional assessment of the appropriate premium payable for the lease extension as well a sensitivity analysis in order to produce best and worst case outcomes in which to base the initial offer and subsequent negotiations.

We will liaise with your own or one of our highly experienced specialist solicitors throughout the process and if required negotiate the premium on your behalf with the leaseholder or freeholders surveyor in order to reach an amicable settlement, keeping you updated along the way.

Our Complete Valuation & Representation ServiceOnce we have established eligibility for the lease extension, the first stage is to prepare a professional assessment of the premium payable to the landlord. We offer a ‘desktop’ valuation service at reduced rates when there is sufficient information provided to us on which to base the assessment (floor plan with measurements, estate agents particulars, photographs etc.) and the existing lease term is in excess of 80 years unexpired or you require an estimate in order to establish whether it is viable for you to proceed.

Our surveyors have an excellent track record in reaching successful settlements on behalf of clients but in the rare event that this is not possible, we will prepare an Expert Witness report and represent you before the First Tier Tribunal (formerly known as the Leasehold Valuation Tribunal).

We are able to offer significantly reduced rates for groups of leaseholders within the same building seeking to act together and in some instances, a collective enfranchisement (freehold purchase) may be worth considering. Please contact us for a free initial consultation and fee quotation.

PROACTIVEYou’ll find our enthusiastic approach refreshing.

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Deposit & Access Once the notice has been served, the landlord may request a 10% deposit based on the premium proposed within the initial notice at any time and so we would advise that you have access to these funds at the beginning of the process.

The landlord is entitled to obtain access to your flat in order for them to have their valuation prepared although a minimum three days’ notice must be given.

Costs Of A Lease ExtensionAs well as your own valuation and legal costs, you will also be responsible for the landlord’s costs in connection with your claim for a new lease under Section 60 of the Act. The landlord’s costs must be reasonable and if they are deemed excessive an application to the Tribunal in respect of this can be made on your behalf.

Each party is responsible for their own negotiation fees and for any costs associated with the preparation or representation if the matter is referred to the Tribunal.

Notices

Once we have prepared the valuation advice, we will then liaise with the appointed solicitor so that they can prepare and serve the initial notice on the landlord (Section 42 Notice) or if you are a freeholder responding to an initial notice, we will arrange for the service of the counter notice (Section 45).

Terms Of AcquisitionOnce the counter notice has been served, upon your instructions we will commence negotiations with your landlord or leaseholder’s surveyor in respect of the premium and the appointed solicitor will negotiate the terms of the new lease.

If the terms of the new lease and/or the premium remain in dispute after two months following service of the landlord’s ‘Counter Notice’, either party may apply to the First Tier Tribunal to have these matters determined.

Any application must be made within six months of the date the counter notice was served and if no application is made within this time and terms of acquisition are not agreed, your notice will be deemed withdrawn, preventing you from making a further claim for at least 12 months.

Once the terms of acquisition are agreed, you will then have a period of 4 months in which to complete on the new lease. This means that funds need to be in place and the new lease must have been signed by both parties. If completion does not take place within this time, your claim will be deemed withdrawn unless a County Court application is made to protect your claim. Your solicitor will be able to advise you further in respect of this.

The initial notice will state the premium we believe should be payable for the lease extension which will be specifically detailed within our valuation report. Your landlord will then have a two month period in which to serve a counter notice in response to your notice of claim. The Counter Notice must admit whether you have the right to a new lease under the Act and if not, it must specify the reasons why. The counter notice must also state which of the proposals in the initial notice are accepted, and specify counter proposals for any proposals which are not accepted. Disputed proposals in lease extension claims will normally include the premium payable and in some instances the terms of the new lease.

Statutory Process – Lease Extension

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COLLECTIVEENFRANCHISEMENT

Leasehold Reform Housingand Urban Development Act 1993

Collective Enfranchisement is a very complex area of practice and requires specialist legal and valuation advice in all cases. We are able to assist you and your fellow leaseholders in establishing eligibility to purchase the freehold of your building as well as discuss some of the pros and cons of doing so. Following an inspection of the development, we will then prepare detailed valuation advice and liaise with your own or one of our specialist solicitors to progress the purchase all the way through to completion.

Freehold PurchaseBlakes Chartered Surveyors offer a comprehensive Collective Enfranchisement service representing both leaseholders and freeholders and can coordinate the entire process on your behalf from inception to completion.

Why Purchase The Freehold?One of the main reasons leaseholders decide to purchase the freehold of their property is so they can take control of the management of their building. If you are dissatisfied with the manner in which your current landlord is managing the building, purchasing the freehold is one way to take control of this. You may also wish to make alterations & improvements to the building or grounds that would normally require freeholder’s consent.

The other main reason to acquire the freehold is to be in a position to grant new long leases to the flats themselves. Many mortgage lenders are reluctant to advance funds against leases with less than 75 years unexpired as they do not represent adequate loan security.

By granting new long leases (typically 999 years leases at NIL ground rent) you can both protect and significantly enhance the value and saleability of your property. The grant of a new lease is also an opportunity to resolve difficulties and defects within the old lease.

Do I Qualify? Establishing EligibilityUnder the Leasehold Reform Housing and Urban Development Act 1993 (as Amended) an application to purchase your freehold must be made by at least 50% of the flats in the block and each of those flats must have been originally granted leases that were in excess of 21 years.

In smaller converted period properties where there are just two flats, both must participate in order to qualify. There is no residency requirement for collective enfranchisement and so you do not necessarily have to have occupied the property allowing those holding leases as buy to let investments the ability to participate as well. There are certain restrictions that may apply and your appointed solicitor will be able to advise more closely on this however if you own more than two flats within a particular building you will not qualify the participation requirements. If your property is above commercial premises, these parts must not exceed 25% of the overall floor area of the building eligible for enfranchisement.

In these instances, you are still entitled to obtain a statutory lease extension providing you have owned the property for at least 2 years and we can also assist you in this regard.

Landlord & Tenant Act 1987

Your decision to consider purchasing the freehold may have been prompted by the service of what is known as a Section 5 (A/B/C) notice from your freeholder offering you Rights of First Refusal under the Landlord & Tenant Act 1987. We can assist you in establishing eligibility, whether the offer is a reasonable proposition and by providing guidance on taking the matter forward.

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The Statutory Process - Collective EnfranchisementSetting Up The Company - The Nominee Purchaser

In most cases, it is advisable that a company is incorporated to purchase the freehold interest (‘the nominee purchaser’). This is because when any of the participating flats are sold, the freehold owner will remain the same and only the list of members/shareholders will need to be changed. Your appointed solicitor will be able to incorporate the company on the participant’s behalf easily and relatively cheaply. In some instances, for example where there are 2/3 units in the building a freehold company may not be required but your solicitor will be able to recommend the best way to proceed.

AccessThe landlord is entitled to request access to the respective flats within the building for the purpose of having their own valuation prepared and adequate notice must be provided to you.

Costs Of AcquisitionYou will be responsible to cover your own valuation and legal costs as well as those incurred by your landlord, as required under the Act. The landlord’s costs must be deemed reasonable failing which an application for determination on costs to the Tribunal can be made. Each party is responsible for their own negotiation fees as well as any costs in the event the matter is referred to the Tribunal.

Initial NoticeOnce we have prepared a detailed valuation report for the proposed collective enfranchisement, your solicitor will then draft and serve the initial notice (Section 13) on the freeholder. In addition to including details of the building, the participating leaseholders and the name of the nominee purchaser (if applicable), this Notice will state the premium we believe should be payable for the freehold of the building itself and a separate figure must be included for any appurtenant property such as the paths, gardens and grounds which may be demised within the respective leases. Your landlord will then

have a two month period in which to respond with a Counter Notice proposal. The Counter Notice must admit whether you have a right to purchase the freehold and if not, it must specify the reasons why. The Counter Notice must also state which of the proposals in the initial notice are accepted, and specify counter proposals for any proposals which are not accepted. Disputed proposals normally comprise the premium itself and less commonly the terms of the transfer itself.

Terms Of AcquisitionOnce the Counter Notice has been served, we will commence negotiations with your landlord’s surveyor in respect of the premium to be paid in order to reach an amicable settlement. Your appointed solicitors will also progress negotiations on the terms of the Transfer Deed of the freehold title.

If the terms of the Transfer deed and/or the premium remain in dispute two months after the Counter Notice has been served, either party may apply to the First Tier Tribunal to have these matters determined.

Any application must be made within six months of the date the Counter Notice was served and if no application is made within this time and terms of acquisition are not agreed, your notice will be deemed to be withdrawn. This means that you will void your current claim and will not be entitled to make a further claim for 12 months.

Once the terms of the acquisition are agreed, you will then have a period of 4 months in which to complete on the freehold purchase. This means that you must have funds in place and the Transfer must have been signed by both parties. If completion does not take place within this time, your claim will be deemed to be withdrawn unless a County Court application is made to protect your claim. Your solicitors will be able to advise you further in respect of this.

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INNOVATIVEAdding value through original and leading edge practice.

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Market ValuationsWe prepare professional market valuation advice for a range of private, corporate, charitable and financial clients and for a wide range of purposes as detailed below. We offer RICS ‘Red Book’ reports for sale and rental values, compliant with International Valuation Standards for both residential and commercial property and are able to undertake portfolio revaluations on behalf of funds or asset managers.

Our fully qualified Chartered Surveyors & RICS Registered Valuers Cover Central and Greater London as well as the South East of England. All of our valuation services are tailored to suit your particular requirements and we are usually able to inspect within 5 working days of instruction providing access is available. Please call us for further information and for a fee quotation.

Probate (Inheritance Tax) ValuationThe valuation of property belonging to someone that has died is one of the first procedures undertaken by the appointed executor or person with power of attorney. Property assets invariably consist the highest value items within ones estate and it is imperative to have these professionally valued in order to minimise the risk of any dispute with HMRC and possible tax liabilities in the future. We retain records relating to the property including our comparable analysis in the event the valuation is challenged by the respective borough valuer or indeed Valuation Office Agency so that we are then well equipped to act on your behalf in respect of negotiations should the need arise.

We prepare professional valuation reports for probate purposes on behalf of executors and solicitors ensuring our reports adhere to the strict requirements of S.160 of the Inheritance Tax Act (1984) as well as the relevant guidance notes produced by the RICS. We can also, if required, act as agent in respect of the sale of the property by private treaty or as joint auctioneers through our associates and are thereby able to offer a complete, professional valuation anddisposal service.

Capital Gains TaxAfter disposal or transfer of a property that is not classed as a principle residence, HMRC will require a formal valuation report in order to calculate the appropriate amount of Capital Gains Tax due. Any gain in value realised upon sale or transfer on a non-owner occupied property that is held as an investment is subject to this tax.

If you are considering transferring an asset, perhaps to a relative or between companies it is highly advisable to commission a professional valuation report for CGT purposes.

Our valuation reports for CGT purposes whether for residential or commercial property, conform to the guidance notes provided by the RICS and adopt the strict definitions and requirements of Section 272, Taxation of Chargeable Gains Act 1992.

MatrimonialWhen long-term relationships come to an end, there are often significant financial issues to resolve. Sometimes this can include the property you share with your partner.

It is usually necessary in divorce proceedings for the family home and estate to be valued for court purposes. Our surveyors are regularly instructed by acting solicitors to prepare single joint expert valuation reports that are compliant with Part 35 of the Civil Procedure Rules. We also act for single parties and have negotiated numerous successful settlements on behalf of clients minimising the need for prolonged litigation.

Accounts & PortfolioIt is often a requirement for companies to have their property assets professionally revalued on a regular basis ensuring that fixed assets are fairly represented on the balance sheet. We are also able to undertake complete portfolio valuations on behalf of property funds, private investors and other institutions on an ad hoc or recurring basis. Our residential and commercial valuation reports are prepared in accordance with RICS valuation standards.

Charities CommissionCharities must obtain appropriate advice when acquiring or disposing of property interests from someone who has the ability and experience to do so competently, acting exclusively for the Charity and who will ensure that the Charity can be satisfied that the proposed Terms are the best that can reasonably be obtained. The Charities Commission recommend that valuation advice should be sought from a member of the RICS.

In accordance with the Charities Act 1993 and Statements of Recommended Practice, we are able to provide charitable bodies with practical acquisition and disposal advice in respect of their property interests allowing trustees to make well informed reasoned decisions.

We have provided valuation and marketing advice to a number of charities over the years and are pleased to assist in small one off sale/purchase proposals right through to complete portfolio re-valuations with strategic asset enhancement advice.

Loan SecurityWe are able to provide lenders with a comprehensive and independent report of the market and rental value of a property or entire portfolio offered as loan security. Our valuations are prepared in accordance with the RICS Valuation Standards and we pride ourselves on providing a comprehensive report clearly setting out the valuation methodology.

Reinstatement Cost AssessmentBlakes have a wealth of experience in the preparation of RCA’s – Reinstatement Cost Assessments for Insurance Purposes which are often referred to as insurance or fire valuations. Whether you are a freeholder, resident management company director, insurance broker or block manager responsible for placing the building insurance on a building under management, it is essential that it is assessed on a three yearly basis in order to ensure an adequate level of cover is in place. Many building insurance policies contain what is known as an ‘averaging’ clause which in the event of a claim allows the insurer to proportionately reduce the pay-out according to the level of deemed ‘underinsurance’ – potentially leaving those responsible for placing the insurance at risk of negligence or requiring the lessees to cover any shortfalls. This clause is however waived by most insurers if a professional assessment is carried out by a chartered surveyor on a regular basis.

It is a common misconception that buildings should be valued to their ‘market value’ and we have come across numerous cases whereby buildings are substantially over insured leading to unnecessary and excessive insurance premiums. There is no correlation between the reconstruction cost of a particular building and its market value and so we highly recommend commissioning an RCA, particularly where the origins of the existing Declared Value are unknown.

We have experience in preparing RCA’s for both residential and commercial properties and have previously prepared assessments for large riverside developments with underground car parks, sea and river retaining walls, high rise residential/office tower blocks, listed London mansion houses and more.

We hold all site notes, detailed measurements and photographs on our systems so that desk top assessments can be undertaken on an annual basis if required at significantly reduced rates.

PROFESSIONAL VALUATION

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We are able to act as Expert Witness

in valuation matters for a variety of

purposes including, but not limited to,

lease extension and enfranchisement,

matrimonial, commercial disputes,

professional negligence (retrospective

valuations) and general litigation.

LITIGATION &EXPERT WITNESS

Our fees for acting on litigation matters are generally carried out on an hourly rate basis although in most instances are able to offer a fixed fee for the initial expert witness report that is prepared for court purposes with further fees payable for liaising with your appointed solicitors, counsel and giving evidence at Court hearings.

SERVICECommitted to client satisfaction across all of our specialisms.

We have particular expertise in the valuation of unusual residential property for sale and rental purposes and have previously prepared CPR compliant Expert Witness reports and given evidence before the First Tier Tribunal (formerly known as the Leasehold Valuation Tribunal), County Court and for High Court purposes with an excellent track record in accommodating out of court settlements or favourable determinations.

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We have been using Blakes Chartered Surveyors for our client’s valuations for some time now. We have always found them to be professional, helpful and approachable in all our dealings. In addition, the reports received are comprehensive and prompt even when we find ourselves having to give “last minute” instructions. To cap it all, Blakes are also very reasonable priced; we would always recommend Blakes.”

Richard Turney.Partner, Rose & Rose Legal, KT1.

INVESTMENT AND DEVELOPMENT CONSULTANCY

Acquisition & DisposalWhether you are seeking to acquire your first rental investment property or are an experienced landlord/investor looking to acquire and develop new build property, collectively our surveyors and associates can offer you bespoke advice

• Site Finding, Negotiation & Acquisition• Planning• Residential & Commercial Property Suitable for

Redevelopment and/or Change of Use• Feasibility Studies including Residual Valuations/

Development Appraisal• Professional Valuation by Chartered Surveyors & RICS

Registered Valuers• Contract Negotiation• Development Monitoring• Project Management including CDM Compliance by

Experienced Building Surveyors• Site Disposal / Sales & Lettings through Dedicated

Estate Agency & National Auctioneers

We can assist you in some or all of the following ways:

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Whilst we do not undertake building surveying related services ourselves,we have associated with some of the industries leading charteredbuilding surveyors and would be pleased to providerecommendations as and when required.Some of the services provided by our associates include:

• Building Surveys, Homebuyer & Condition Reports• Major Works Specification writing for Houses & Blocks of Flats• Tender Analysis & Contract administration• Building defects diagnosis• Dilapidations, Schedules of Condition• Planned and reactive maintenance• Refurbishment & Extensions (Including Planning Applications)• Building regulations and property legislation compliance• Capital expenditure plans• Licences for alterations in leasehold property• Party wall Act 1996

Please call us to discuss yourrequirements and wewill be pleased toprovide contactdetails for ourassociates.

As the freeholder of the building and after receiving a section 42 notice from one of the leaseholders, I instructed Blakes to prepare a lease extension valuation on my behalf and handle the negotiation of the appropriate premium to be paid. Roshan inspected the property promptly and provided me with a detailed and accurate valuation of the premium payable which was significantly higher than what was offered by the leaseholder. Following some extensive negotiations with the lessees surveyor, Roshan agreed an excellent settlement allowing the matter to be completed without referral to the Tribunal, acting in my best interests and ensuring my financial interests in the freehold were protected. I would highly recommend using Blakes

Chartered Surveyors.

John King.Barrister, 9 Bedford Row, WC1R.

BUILDINGSURVEYING

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We also offer a range of professional estate agency and property management services across London & Surrey through

our associate company, Blakes Property.

BLAKES PROPERTY

Residential Sales & LettingsCommercial Agency

Property ManagementDisposals on Behalf of Asset Management Companies

Joint Auctioneering

Please call us for further information/company/blakes-chartered-surveyors

@blakessurveyors

See our case studies, more testimonials and sign up for our newsletter:

www.blakessurveyors.com

Contact us and speak with one our friendly consultants who will provide a free initial consultation to discuss how we may be able to assist you.

+44 (0)20 8296 1234

info@blakessurveyors.com

Blakes Surveyors Ltd. Registered in England 9184264 | VAT Registration Number: 196 0691 76 | Regulated by RICS

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