Freeholder needs help!

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    Freeholder needs help!

    Hello.

    Two years ago​ I bought the freehold of a house which is comprised of two freehold flats - mine on the ground floor which is currently rented out through an agency, and a first-floor flat which currently pays £100 a year ground rent. Now the first-floor flat owner wishes to extend his lease (which was last extended by 99 years 10 years ago) by 90 years and is offering just under £6500. Does that sound reasonable? If it is, what should I do next? Ask for my own valuation anyway? Will I need to get a solicitor to do all the formalities? If yes, will all my costs be definitely covered by the freeholder?
    Finally, any recommendations with regards to Valuers and/or solicitors?
    Thanks in advance for any help and information.

    #2
    Sorry, that should be "two LEASEHOLD flats".

    Comment


      #3
      Did you also mean extended to, rather than by, 99 years and that the leaseholder would pay the costs.

      Comment


        #4
        The schedule says "99 years from December 2009".

        Also, in case it's important, the property is in North London, N17.

        Comment


          #5
          I'm presuming that the leaseholder would pay the costs?

          Comment


            #6
            The leaseholder is asking for a lease extension using the informal route. The first step is a valuation by a RICs qualified surveyor (see the RICs website). The surveyor may also negotiate with the leaseholder on your behalf. The landlord's valuation is paid by the leaseholder and you can request this fee in advance; make it clear it is not refundable should the extension not go ahead for any reason. Assuming agreement is reached, the leaseholder is also responsible for the landlord's legal costs. It is up to you to decide what to offer with regard to terms, premium and any changes to ground rent via the informal route. The leaseholder does not need to agree and could instead elect to use the statutory route to extend their lease provided they have owned the lease for at least two years.

            The statutory route will add +90 years to the lease and reduce ground rent to peppercorn (nil). The leaseholder will still be liable for landlord's reasonable valuation/legal costs and will also incur fees to apply to the FTT for a determination of the premium.

            You will find information on LEASE's website. There is also a lease extension calculator which provides an idea of premiums but cannot be relied upon or used in court.

            Comment

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