The freeholder doesn't need a solicitor. But I strongly suggest that you get unanimous agreement and extend the whole lot equally.
Can the residents management company which I run, extend the leasehold for my flat?
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I would suggest you could proceed by :
1. Getting valuation for your flat from 2 or 3 estate agents who might be appointed to sell your flat based on ( a) 69 years lease ( as now) and (b) 159 years lease at Peppercorn GR after statutory 90 year lease extension. There may show 10% difference in value. .
2. Getting quotes from 2 or 3 solicitors for lease extension work for ( a) one flat to 159 years lease only and ( b) all 4 flats extended at same time. Based on changing the existing lease from 69 years to 159 years ( or longer to 999 years lease ) and no premium charged for lease extension. Assume 1 solicitor can be found willing to act for both sides due to Nil Premium ).
3. The difference in price ( between 69 years and 159 years ) will be around 10%, Say £10K
4. The solicitor costs may be quoted at £750 ( one flat) and £2000 ( 4 flats at same time ) - I am guessing figures.
5. When the lease falls below 70 years, its difficult to get a mortgage. So should be easy to get agreement for all to extend together.
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Originally posted by umshamrock View PostThanks for the messages, all. We have notified the other directors to see if they would like to extend their leaseholds at the same time. We all own equal shares of the freehold and all of our leases expire at the same time, in 69 years. Everyone paid an equal amount when the company acquired the freehold. I have spoken to a couple of solicitors and have been told the freehold needs a different solicitor than the leasehold so we'll have to pay for two solicitors! This just seems crazy since we are only dealing with ourselves, and the three other owners who all work together regularly.
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Are you still paying ground rent under the terms of your lease, even though you also own a share of the freehold? Assuming there are several shareholders, then you as a director seem to have a conflict of interest, especially as the length of the lease might create marriage value. I would suggest another director to deal with this on behalf of the freehold company, involving an independent surveyor to determine the fee and then get shareholder agreement in an Extraordinary General Meeting (EGM). You seem conflicted in this scenario to act in the best interest of the majority of shareholders.
We are setting up a freehold company, and anticipate a comparable scenario, where we even consider issuing different classes of shares, to ensure a leaseholder does not have a vote when it comes to the premium to extend his own lease.
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by WranglerHello,
I have been living in a leasehold property for the last 8 year. I have always paid ground rent to the freeholder every year via bank transfer. Recently a new freeholder has taken over and is under the impression that I have not been paying and has sent a formal demand for backdated...-
Channel: Long Leasehold Questions
18-01-2021, 20:01 PM -
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by eagle2I would definitely not pay by bank transfer, otherwise the freeholder is likely to apply the payment against the oldest ground rent which he is claiming. It doesn't matter if he bins the cheque (he won't) as long as you keep a copy and you hold proof of posting....
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Channel: Long Leasehold Questions
20-01-2021, 06:21 AM -
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by eagle2There is a huge amount of landlord and tenant legislation and Companies Act requirements to comply with and I am not aware of a single source of information. The RICS code of practice deals with many of the former and Companies House produces useful booklets.
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Channel: Long Leasehold Questions
20-01-2021, 06:17 AM -
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by JackBluebirdStruggling with how to proceed,
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Channel: Long Leasehold Questions
15-01-2021, 07:00 AM -
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by eagle2If you just send a cheque for ground rent with no other comment, the probability is that the payment will be accepted and applied against other charges and additional charges will be added to your account. I respect Lawcruncher's advice but I think that it is important to state that the cheque may not...
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Channel: Long Leasehold Questions
20-01-2021, 06:05 AM -
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by J-TI've read around on here and read the FAQ, but I'm hoping for a little more direction on the following:
I purchased a long (999yr from 1976) leasehold BTL in 2018. I have just refinanced the property and the mortgage company asked about the ground rent account, which spurred me into thinking...-
Channel: Long Leasehold Questions
18-01-2021, 20:31 PM -
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by LawcruncherSend a letter to the agent/landlord enclosing a cheque for the rent. Say: "I enclose a cheque for the rent relating to [insert address of property]". Say absolutely nothing else.
Have a look at the lease and let us know if if it has a clause dealing with the payment of the landlord's...-
Channel: Long Leasehold Questions
19-01-2021, 17:00 PM -
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by JackBluebirdThanks for the replies guys. Is there anywhere i can find some sort of draft or template letter for directors to inform them of their obligations and the surrounding legislation?...
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Channel: Long Leasehold Questions
19-01-2021, 15:17 PM -
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by Section20zTell them to do one , but I would pay this year's otherwise you might be in trouble. Try and get bank details (say you want to pay the lot??)so you can pay direct , otherwise they can bin cheque.
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Channel: Long Leasehold Questions
19-01-2021, 13:25 PM -
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by Slj1108Thank you Lawcruncher. Waiting for my solicitor to get back to me at the moment.
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Channel: Long Leasehold Questions
19-01-2021, 13:21 PM -
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