cmcbugg
21-08-2007, 15:46 PM
From reading the LVT website (http://www.lease-advice.org/cevaframe.htm) it says
In a Collective Enfranchisement action marriage value is only chargeable in respect of the flats of the participating leaseholders. The flats of those leaseholders not participating in the action are not included in the calculation in that there will be no improvement in the value of those flats arising from the enfranchisement.
So if there is
Flat 1 - 88 yr lease - 1 bedroom
Flat 2 - 73 yr lease - 1 bedroom
Flat 3 - 73 yr lease - 3 bedroom
The marriage value for flat 3 will be the greatest because it has the highest market value (no marriage value for flat 1 because it is > 80 years). So if only Flat 1+2 take part in the enfranchisement does that mean that collectively they will pay less for the freehold than if flat 3 was included? To me that is what the above quote implies - but as you don't get anything for free in this life I know that can't be the case!
Can anyone explain?
In a Collective Enfranchisement action marriage value is only chargeable in respect of the flats of the participating leaseholders. The flats of those leaseholders not participating in the action are not included in the calculation in that there will be no improvement in the value of those flats arising from the enfranchisement.
So if there is
Flat 1 - 88 yr lease - 1 bedroom
Flat 2 - 73 yr lease - 1 bedroom
Flat 3 - 73 yr lease - 3 bedroom
The marriage value for flat 3 will be the greatest because it has the highest market value (no marriage value for flat 1 because it is > 80 years). So if only Flat 1+2 take part in the enfranchisement does that mean that collectively they will pay less for the freehold than if flat 3 was included? To me that is what the above quote implies - but as you don't get anything for free in this life I know that can't be the case!
Can anyone explain?