Lease Extension enquiry

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    Lease Extension enquiry

    Hi

    I’m new to this forum so apologies if I’ve posted this in the wrong area, or there’s already a discussion re this elsewhere.

    I’m after some advice re extending my lease.

    I have 80 years left on my lease on a flat, which originally started with just 120 years.

    I’ve read that when you get to 80 years and below, the freeholders like to take advantage; and add extra costs!
    I’m therefore wanting to increase my lease. I’ve contacted the freeholders re costs, but they’re being a bit awkward and not willing to provide me a cost for the extension, until I initially pay around £900 for a valuation, only after that they will serve a section 42 notice, which again I’ll be liable to pay for via appointing a solicitor, then they’ll provide a cost for the extension!

    it seems quite costly, just to find out a price, that may be way to high for me to even consider in the end.

    I’ve also heard about this Leasehold Reform Legislation which was discussed back in January, but nothings certain about when it’ll come into play (if it ever does).

    I’m keen to know if anyone has ever been in a similar situation and how it was resolved. Also if anyone can advise if I should go ahead with the process as mentioned above, as I only have 80 years left, or should I wait etc, or if there are other ways/options.

    Thanks

    #2
    At 80 years plus the governments proposals will have little effect if any on the premium. In any event the Government is going to struggle to get the measures they hope through the Commons and the Lords and deal with the inevitable human rights challenge that will be coming its way

    At 80 years the premium will be around 20 times the ground rent plus 2% of the value of the flat, and you should serve a Section 42 Notice now before it goes below 80 years

    You should proceed immediately with your claim

    Comment


      #3
      If you start lease extension below 80 years , the cost of extension is increased by "50% of the marriage value". So proceed immediately as recommended in post 2.

      There is a free guide on lease extension which can be downloaded from LEASE website ( www.lease-advice.org ) .

      Comment


        #4
        Yes you need to do it now, you don't need a solicitior as most are incompetent, I have pm'd the name of a specialist who knows the ropes.
        If you are already at 80 years and not needing to sell then it might be best wait for the proposed legislation but that might be years away. If at all.

        Comment


          #5
          Section20z,

          Got the message, thanks for the advice

          Comment


            #6
            sgclacy,

            I don't think they will effect the premium but they should put an end to the extortionate fees you pay if there is no agreement on the lease extension valuation

            I believe they are proposing a calculator that is a one stop shop for lease extensions, which seems like a pretty good idea. They also propose a 990 year extension rather than the 90.

            Other than that the OP is banking on the government abolishing marriage value in their proposal which is quite risky. At 80 years I would just extend now as you could end up costing yourself more in the long run.

            Comment


              #7
              I think the only area where the government can deliver savings to the lessee is to make the landlord bear his own costs - particularly if acquired post-1993.

              I think the abolishing of marriage value will happen, but the deferment rate used currently 5% to value the reversion may be lowered to 4% which would give the landlord the same sort of premium . It would make the calculation simpler and avoids having to consider relativity in a no act world which becomes increasingly difficult as time passes since the act came into being in 1993

              I think the capping of rents particularly if that was to be lower than the initial rent would seem unlikely. The challenge from the Great Estates and the insurance industry will be very great indeed. Why should the rent be lowered from what was agreed at the outset, seems most bizarre

              Comment


                #8
                Hello. I am starting the process to extend my lease as it has just reached 80 years. The Landlord has come back with a number of £15,000 plus costs but hasn't given me any breakdown on how these costs were calculated. Is there an official set calculation that should be used, or can they basically just make up any number they want?

                Comment

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