Newsletter Issue 14 EXTEND YOUR LEASE - INCREASE IT S MARKET VALUE THE OLYMPICS A GRIDLOCK OR A SMOOTH RUN?

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1 EXTEND YOUR LEASE - INCREASE IT S MARKET VALUE would be worth at the end of the existing lease when the flat would otherwise have been handed back to the freeholder. This is known as the reversionary value. If the present lease has less than 80 years unexpired then the freeholder is also entitled to a 50% share of the marriage value. In simple terms, the marriage value is the difference between the value of the flat with a long lease, and the value of the flat with a short lease, on the assumption that the lessee has no rights under the 1993 Act. The value of the premium obviously varies depending on the various figures and yields applied. Under the terms of the 1993 Act, the lessee will also be responsible for the freeholder s reasonable legal and valuation costs in dealing with the matter. Do you own a leasehold flat? Then spare a moment to consider whether you should be extending the lease. If you purchased the flat with 99 years or less unexpired then it will certainly be in your best interests to extend the lease before the unexpired term falls below 80 years. If you are thinking of selling your flat within the next few years then a longer lease will certainly make the property more saleable and also increase the market value of the property. Provided that you qualify under the terms of the Leasehold Reform, Housing and Urban Development Act 1993 then you are legally entitled to purchase a ninety year extension to the existing lease term at a new peppercorn (zero) ground rent for the whole of the new term. Thus, if you currently have a lease term of 70 years unexpired with an annual ground rent of 50, the extended lease would be for 160 years with a peppercorn (zero) ground rent. It is therefore very important that the amount of the premium is assessed accurately and professionally. At MAP, we offer a fast and efficient service to value the premium necessary to purchase an extension to the existing lease. We provide you with a report which explains the process, lets you know what your next step in the procedure should be and we are also able to suggest solicitors who specialise in lease extension work, including the serving of notices. So, if you wish to extend your lease or perhaps join together with other lessees in the building in order to purchase the freehold interest, then contact our office on for a free initial telephone consultation and advice as to what your next step should be. John Card MAP Chartered Surveyors The premium to purchase an extension to the lease is assessed by calculating the present value to the freeholder of the future ground rent payable under the existing lease, plus the present value of what the flat THE OLYMPICS A GRIDLOCK OR A SMOOTH RUN? The Olympics opening ceremony is on the 27th July 2012 coinciding with the busiest holiday getaway weekend of the summer, having a significant impact for many motorists who, during the first three days of the games will experience many frustrating gridlocks. For many of us it is work as usual and many traffic experts warn that millions of drivers and commuters in London and the South East around the will be hardest hit, adding extra time to many journeys during rush-hour traffic. Olympic planners hope 80% of visitors to the main Games will arrive by public transport, using park and ride schemes that have the capacity for 18,000 vehicles in Essex and 9,000 in Ebbsfleet. However, the report noted that with the major Lakeside shopping centre adjacent to the, Traffic trouble will be near impossible to avert. Like many companies, MAP Chartered Surveyors relies heavily on the road network to arrive at appointments within a specified time and will endeavor to do so during the Olympics. With this in mind, we have obtained a map that highlights the problem areas you may wish to avoid. (Please find enclosed). If you require further details please visit gov.uk/2012. MAP hopes all its readers enjoys the Olympic extravaganza and wishes the Great Britain team the best of luck in achieving their gold. Jane Pilkington MAP Chartered Surveyors T: E:surveys@mapsurveyors.co.uk W:

2 THE TRANSFER OF PRIVATE SEWERS Last year saw a change to the treatment of private sewers and private lateral drains. Those outside the curtilage of the property they serve which immediately before 1 July 2011 drained to a public sewer transferred to the relevant water or sewerage company within which the property served by the sewer or drain is situated. The Department for Environment Food and Rural Affairs (Defra) published the following diagrams illustrating the responsibility for private sewers and drains before and after the transfer: BEFORE: felt that such customers were in effect paying twice for their sewer service and in doing so were effectively subsidising all those not served by private sewers. It is also hoped that the transfer will improve the condition of the sewerage infrastructure. Broadly, only pipes draining more than one property and those outside of the curtilage of a property and that are connected to a public sewer have been transferred. Curtilage is not defined in the legislation. Defra states that for the purposes of transfer one practical basis for establishing the limits of the curtilage of a single property may well be the land within the boundary of that property. While the best evidence of this area and its boundary will often be the legal boundary this is not always the case. AFTER: Footpath Residential Property Public Sewer, responsibility of water company Drain, responsibility of home owner Private Sewer, responsibility of home owner Footpath Residential Property Public Sewer, responsibility of water company Drain, responsibility of home owner Private Sewer, responsibility of home owner Public Highway Public Highway The transfer seeks to address the apparent unfairness to customers paying for water and sewerage companies for sewerage services and also being responsible for the private sewers serving their properties. The Government There are a number of implications for property owners and developers which include: Access to private property - water companies will have statutory powers under the Water Industry Act 1991 to enter private property to carry out maintenance of the newly acquired drains and sewers. Building over drains - water companies requirements regarding building close to or over public sewers will now apply to these newly transferred pipes. Previously built-over drains - newly transferred sewers which have been built over in the past will not have been approved by the water companies. However, it is understood that so long as proper building control consents were obtained and suitable measures to protect the drains were put in place that the water companies will not raise any issues with such drains. Of course landowners will now have to allow access to the water companies. It will no longer be possible to connect to the public sewer without an adoption agreement. This could lead to delays and additional costs for developers. Landowners who have granted an easement (right) for a private sewer or lateral drain on their land may also be affected. Often landowners include the flexibility to lift and shift existing sewers at the cost of the party with the benefit of the easement. They may also have included rights to build over or close to the sewer or drain. These rights will be lost. Public sewers cannot be diverted without the consent of the water or sewerage company. Sarah Easton Senior Associate MAP S FAVOURITE ESTATE AGENT OF THIS QUARTER This quarter we are pleased to announce MAP s chosen estate agent of the quarter is Bushells - East Dulwich. Nicole Efthymiou is the Assistant Manager at Bushells, East Dulwich branch and is always extremely helpful and prepared to spend time assisting our surveyors with comparables. Thank you Nicole your willing to help attitude makes a great deal of difference to a Surveyor s day and is greatly appreciated. T: E:surveys@mapsurveyors.co.uk W:

3 A FISHY EXPERIENCE Surveyors Tales... Some time ago I was asked to inspect and value a property in South East London for a mortgage. It was on the High Street and comprised of a 3 bed late Victorian mid terrace house. The external condition was fair. On entering the living room I was amazed to find fish swimming about on the floor. The owner had tanked the room with fibre glass to the floor and part way up the wall. His furniture was supported on bricks or concrete blocks, which included the television, (electricity and water!!!!). There was no access to the garden as the vendor had covered over the door with the fibre glass. Damp meter readings were impossible. The bedroom at this property was also unusual. You had to enter it on your hands and knees through a tunnel of fabric that led into a chamber of fabric hanging from the ceiling and walls. No bed, but a mattress and fabric on which he laid. He called it his calming room where he could recover from a days work!! Perhaps surveyors should have a calming room too. WE MAP My husband and I were very happy with the Homebuyers Report we received. I would absolutely use your services in the future and recommend you to my friends and family. Mrs R. London The service I received from MAP was very good. I spoke to the surveyor who completed my Building Survey on two occasions and he was very helpful. I would recommend your services to others and would use MAP again. Miss H. Dartford, Kent CONGRATULATIONS MAP wishes to congratulate the Queen on her Diamond Jubilee. This is quite an achievement, as the first British monarch to mark 50 years on the throne was George III and the only other British monarch to celebrate a Diamond Jubilee was Queen Victoria in FAMOUS QUOTES It s not the employer who pays the wages. Employers only handle the money. It s the customer who pays the wages. (Henry Ford, American Lecturer) T: E:surveys@mapsurveyors.co.uk W:

4 Newsletter Issue 14 Dates For Your Diary Whether it s a residential property requiring a survey; an office building/shop in need of a Commercial EPC or a flat requiring a lease extension/enfranchisement. MAP has the expertise to cater for all your requirements. APRIL Good Friday Easter Sunday Easter Monday Queens Actual Birthday St. George s Day 06th April th April th April st April rd April 2012 MAY Early May Bank Holiday 07th May 2012 JUNE Coronation Day Spring Bank Holiday The Queen s Diamond Jubilee Royal Ascot Fathers Day Longest Day Of The Year Wimbledon Tennis Henley Royal Regatta 02nd June th June th June th 23rd June th June st June th 8th July th 1st July 2012 Contact us on Tel: or us at surveys@mapsurveyors.co.uk MAP CROSSWORD T: ACROSS DOWN 1. Roof-timber (6) 4. Quay (5) 7. Singing Voice (4) 8. Bung (4) 10. Awaken (5) 11. Illicit (7) 12. Mixer drink (4) 14. Outmoded (5) 16. Robust (5) 18. Probabilities (4) 19. Fabric Joint (4) 21. Arrest growth (5) 22. Sci-fi hero, Gordon (5) 25. Largest continent (4) 28. Ancient (7) 29. Fury (5) 30. American space agency (4) 31. Footballer, Giggs (4) 32. Soiled (5) 33. Sarah, TV presenter (6) 1. Spore (anag) (5) 2. Liquid (5) 3. Starving (8) 4. The Lost,Conan Doyle Novel (5) 5. Grown-up (5) 6. Liberty (7) 9. Spectacles (7) 13. Elderly (3) 15. Renounce, forgo (7) 17. Heartbreaking (8) 18. Brusque (7) 20. Islamic name (3) 23. Roman soothsayer (5) 24. Comedian, Enfield (5) 26. Frighten (5) 27. Not sleeping (5) E:surveys@mapsurveyors.co.uk To check your answers visit W:

5 EASTERN AVE NORTH CIRCULAR A112 A1011 A1020 NEWHAM WAY SANDSTONE LANE A102 A117 NORTH WOOLWICH RD WOOLWICH ILSO N ST A102 W JOH N CHARLTON PARK A102 LANE A205 HILL SHOOTER S A2 A11 EAST CROSS ROUTE A41 CITY PRINCE ALBERT BLACKWALL BOW RD MILE END RD PARK WHITECHAPEL RD 02 TUNNEL NORTHERN APPROACH EUSTON A501 A5 A4200 BAKER STREET A40 WES TWAY UPPER A402 THE HIGHWAY 03 NOTTING HILL GATE A100 TOOLEY A3200 PARK LANE ST STH CARRIAGE WEST CROSS DRIVE A4 JAMAICA A302 ROUTE A1 00 LOWER A201 LAMBETH PALACE CROMWE L RD MILLBANK A202 A4 WEST CROMWELL RD A3204 A3220 GROSVENOR R D EVELYN ST CHELSEA EMBANKMENT A3212 B317 A2209 NINE ELMS RD A3216 BLACKH EATH CAMBERWELL A203 A202 NEW KING S QUEEN S NEW CROSS RD LIMEHOUSE LINK THAMES ST EMBANKMENT VICTORIA TUNNEL BL ACKWALL ST. THOMAS STREET BIRDCAGE WALK TRAFALGAR MAZE HILL to Wembley Stadium to Lee Valley White Water Centre to Hadleigh Farm A207 A10 M11 7 M40 A40 A355 A312 A4 M4 A202 A4 M4 A2 A30 M3 05 A3220 REDCLIFFE GARDENS to Eton Dorney, Weymouth and Portland HILL CLAPHAM BATTERSEA PARK RD A3205 A308 CLAPHAM COMMON NORTH SIDE YORK RD A219 BATTERSEA RISE A3 A3 to Wimbledon Wembley Stadium and Lord s Cricket Ground Wembley Arena Olympic Lee Valley White Water Centre Hyde ExCeL Earls Court Eton Dorney Wimbledon Horse Guards Parade and The Mall Crown Copyright and database right Ordnance Survey Licence number Lord s Cricket Ground Hyde North Arena Royal Artillery Barracks The Mall Hadleigh Farm Horse Guards Parade N Olympic Route Network (ORN) and Paralympic Route Network (PRN) (ORN and PRN will operate during the Olympic and Paralympic Games, and shortly before and after them for the arrival and departure of the Games Family) Olympic Route Network (ORN) (ORN will only operate during the Olympic Games, and shortly before and after them for the arrival and departure of the Games Family) Alternative Olympic Route Network (AORN) (to be used if the Olympic Route Network cannot be used) Olympic Route Network (ORN) and Paralympic Route Network (PRN) (used on Games Road Event days only) Olympic Route Network (ORN) (used on Games Road Event days only) Competition Venues Central London Zone Extent of temporary road changes (Olympic Games only) Central London Zone High numbers of spectators expected in this area (Olympic Games only) Kilometres North Arena ExCeL River Thames Earls Court Olympic Route Network and Paralympic Route Network Olympic Royal Artillery Barracks Transport for London A218 Version 5D January 2012

6 M1 A3 A1(M) DOCKLANDS M4 CROYDON A27 EDMONTON BIGGIN HILL A23 M23 M11 ROMNEY A27 A282 SIDCUP M26 BRENTWOOD M20 SOUTHEND M2 BOROUGH GREEN A2 THANET Aylesford Barking Basildon Beckenham Belvedere Benfleet Bexley Bexleyheath Billericay Brentwood Bromley Canvey Island Carlshalton Chadwell Heath Chatham Chelmsford Chigwell Chislehurst Coulsdon Cranbrook Crowborough Croydon Dagenham Dartford East City London East London Edenbridge Epping Erith Etchingham Eynsford Farmingham Gillingham Gravesend Grays Greenhithe Harlow Etchingham Eynsford Farmingham Gillingham Gravesend Grays Greenhithe Harlow Harold Wood Hockley Hornchurch Ilford Ingatestone Leigh on Sea Longfield Loughton Maidstone Mayfield Meopham Mitcham North London Old Harlow Ongar Orpington Purley Rainham Rayleigh Rochester Rochford Romford Sevenoaks Sidcup Sittingbourne Snodland South Croydon South East London South Ockenden South West London South Woodford Southend on Sea Stanford Le Hope Swanley Swanscombe Thornton Heath Tilbury Tonbridge Tunbridge Wells Upminster Wadhurst Wallington Waltham Abbey Warlingham Welling West London West Malling West Thurrock West Wickham Westcliff on Sea Westerham Whyteleafe Wickford Woodford Green T: W: