Lease Extension Questions / S45 received

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    Lease Extension Questions / S45 received

    Hi there, I am looking for some advice about a formal lease extension for a flat with 66 years left on the lease.

    Based on a valuer calculation I have offered the FH a premium of £8.5k in the S42 and their counteroffer is £14.5k...which seems to also includes their fees (... the premium payable for the new Lease shall be £x together with the payment of the reversioner's cost incurred in this matter in substitution for the proposed premium of £x)

    Now that I have received their S45 how do I go about negotiating the counter offer? Is it the matter of me telling my solicitor to say no, instead of £14.5k proposed by the FH, up my offer from £8k to £9k? Do I need to involve the valuer to talk to them? I recall we can do this back and forth for 2 months and it's the matter of offer more here and there?
    I understand that the FH may not budge at all. BTW - they did not instruct a valuer before issuing the S45.

    Thanks!

    #2
    Difficult to comment without knowing whether your proposal was reasonable

    what was the term of the lease the ground rent and it’s review pattern and the value of the flat if it had a long lease

    Comment


      #3
      My offer/proposal was based on the RICS valuer guidelines and report. He suggested between £8k to £10k based on the property price.
      It was a formal extension via S42, so no GR, buying a new lease, etc.

      My question is more about the process, i.e. is it just the matter of going up with my offer, then wait the FH to counter (they may not) and etc.

      I have no idea how the FH derived their premium, I assume they valued the property more than my RICS valuer.

      Comment

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