Freeholder and lease extension issues

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    Freeholder and lease extension issues

    Hi

    We sold our flat in November 2018, and our freeholder has been very difficult, not responding to our solicitors questions etc. We are getting a lease extended, it has 66 years remaining. At first the freeholder said it would be 12,500 to extend, we were told to offer 11,000 in which they refused.

    Recently my solicitor asked where they got the 12,500 figure from as the lease advisory calculator says it should be in the region of 19,000-20,000 max. We then offered 19,000 and the freeholder rejected it and came back with a figure of 26,000 to extend!

    Since this is now nearly 5 months since we sold, our buyers are on the verge of pulling out because it’s taking too long due to the freeholders incompetence.

    We are now looking for an litigation solicitor to help with the extension, but any advice?

    Thank you.

    #2
    You need a solicitor with experience in Landlord & Tenant Act and in statutory 90 years lease extension. Try getting a quote from Mayfield Law ( their solicitor used to work at LEASE )

    You can also apply to the FTT to decide the cost to pay for statutory 90 Years Lease extension.

    Comment


      #3
      Originally posted by Losingmymind View Post
      Hi
      We are getting a lease extended, it has 66 years remaining. At first the freeholder said it would be 12,500 to extend, we were told to offer 11,000 in which they refused.

      Recently my solicitor asked where they got the 12,500 figure from as the lease advisory calculator says it should be in the region of 19,000-20,000 max. We then offered 19,000 and the freeholder rejected it and came back with a figure of 26,000 to extend!
      Are you saying that the freeholder quoted £12,500 for the lease extension and YOUR solicitor then queried this amount because it was too low, and advised you to offer more than they were asking rather than telling you to accept their offer?

      Has there been any change in the terms of the extension that the offer refers to?

      Comment


        #4
        Negotiated lease extensions are definitely not the way to go. The freeholder can basically ask for whatever they want, even a £1m! You may have to issue a notice under S42 of the leasehold reform act, but the whole process could take 9 months to conclude if you end up at a tribunal.

        Comment


          #5
          It took nearly 9 months for my extension to be concluded even without going to a tribunal.

          Comment


            #6
            There are 2 types of lease extension : statutory and non-statutory

            The leaseholder has a legal right to seek a statutory 90 years lease extension at peppercorn ground rent . This would give lease of 90 + 66 years = 156 years at peppercorn ground rent = Nil ground rent for 156 years.).

            Some leaseholders try to negotiate with freeholder for a "non-statutory lease extension" back to original 99 years or 125 years starting term with higher modern ground rent for an extension ( at lower cost than for the statutory one ).


            The free guide to lease extension by LEASE shows an example for lease extension on a 68 years lease.

            https://www.lease-advice.org/advice-...ion-valuation/

            This example shows the cost of lease extension calculated for extending a 68 years lease at £10,700 to give a "long lease" valued at £165,000, to be = 6.5% of the long lease valuation.

            You should lodge a complaint about your sale problem to your local MP and to Housing Minister , and to HMRC against the Freeholder company.

            Comment

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