Professional Valuation Services (RICs) - Section 42 Lease Extension and Land Sales Valuation

Tender description

The Council seeks RICS approved professional valuation services with regard to the reasonable premium to be paid by the leaseholder for a 90 year lease extension at a peppercorn rent and to provide valuations for land sales. Leasehold properties reduce in value over time, the less time is left on the lease, the less valuable the property becomes. The law gives the leaseholder the right to extend their lease. The right is to add 90 years to what is left of the existing lease at a ‘peppercorn rent’. A peppercorn rent means no ground rent is paid. The landlord (GBC) is entitled to a premium (the price) for extending the lease, this is based on a formula set out in the Leasehold Reform Housing and Urban Development Act 1993. The tenants notice starts the legal procedures for buying the new lease. Once the leaseholder submits a Tenants Notice (Section 42 Notice (relates to section 42(3) of the 1993 act) to the landlord (GBC). The landlord (GBC) must serve their Counter-Notice by the date stated in the tenants notice. Therefore the valuation will need to be completed and a report submitted to the Council within two weeks (10 working days) from the request to carry out the valuation. The valuator will need to provide a value (in a range ‘at least to at most’ to allow for room to negotiate with the leaseholder). Keywords: Lease, Extension, Valuation, Surveyor, Property, Chartered