Lease extension with rising rent

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    #16
    Originally posted by Section20z View Post
    Just to update, the informal offer has not been accepted and freeholder is threatening to apply to court to have S42 notice declared invalid due to not giving full 2 months time to respond (served by email without allowing time for service) and property not being correctly identified (flat number not given)
    In fairness, the freehold has every right to reject the notice when errors are made of that magnitude.

    As it is invalid, you can immediately serve another. If it was deemed valid, and you withdrew then you have to wait 12 months

    Comment


      #17
      Originally posted by Gordon999 View Post
      This report on CMA actions may help if your property developer is a company named in this report.:

      https://www.gov.uk/government/news/c...easehold-terms
      Very large ground rents bizarrely are not onerous. - a very large rent stands out during the conveyance, and the parties adjust the price accordingly. If a ground rent on a flat ordinarily worth say £300k with a nominal rent is sold for £10,000 because the ground rent is say £10,000 per annum then it cannot be said that the rent is onerous because the purchaser would have paid very little capital to acquire the lease and would have certainly spent time thinking it over before purchase

      The rent in this case attempts to keep pace with the rise in property values are there is nothing outrageous about it. In fact, because it is linked to the sale price, the parties will spend time calculating it and reflecting on it before taking on the lease - therefore it should not be onerous. It is onerous if the conveyance is handled in a cack-handed way and the rent not thought about - in which case why should the freeholder who is not a party to the subsequent sale have to lower the rent to help tidy up the mess of others



      Comment

      Latest Activity

      Collapse

      • Can I put an office room in my garden?
        by darcia
        Hi, so I want to put an office in my garden which I think it'll be classified as outbuilding. It'll be of about 5 x 4 m I believe.

        Can I do it based on these clauses?

        Thanks very much for your help.
        1. Not to make any external or structural alteration or addition to the Property
        ...
        27-09-2021, 19:58 PM
      • Reply to Can I put an office room in my garden?
        by nukecad
        Clause one says that you are not to make any external alterations or additions.

        The way it reads that includes free standing aditions. (Garage, outhouse, shed, etc).

        Unlike the other two clauses, it doesn't mention consent at all, it's just a bare prohibition.
        27-09-2021, 23:36 PM
      • Reply to Can I put an office room in my garden?
        by Neelix
        As you will need to alter the house electrics you will need to seek the written approval of the LL
        27-09-2021, 20:18 PM
      • Ground rent linked to value of property
        by ecfc29
        Hi all,

        Looking for some advice.

        My current GR is £100 pa, but in approx 16 years time will increase to 0.20% of the property value (1/500th as per lease), which is then reviewed at further 25 yr intervals until the end of the lease in c113 years time. So while there is no...
        27-09-2021, 12:15 PM
      • Reply to Ground rent linked to value of property
        by sgclacy
        No great pearls of wisdom will come from employing a surveyor to work out the premium - they will give you a range of values depending on the capitalization rate and clearly you know how to do it - the ground rent does have a strong element of protection from inflation, but that is dependent on house...
        27-09-2021, 19:18 PM
      • Reply to Ground rent linked to value of property
        by Gordon999
        You can download a free guide to statutory 90 years lease extension from LEASE website ( www.lease-advice.org ).

        You can use the LEASE calculator to find out the "cost of statutory lease extension" now ( 113 years remaining ) , and 2 years later ( 111 years remaining ) and...
        27-09-2021, 16:26 PM
      • Incompetent Managing Agent
        by aki131960
        After years of poor management by our head leaseholder, we adopted the RTM with 4 directors and appointed managing agents. I had reservation about the agents and voiced these but one of the other 3 directors insisted that they had good references. As we were running out of time before the transfer...
        05-08-2021, 13:33 PM
      • Reply to Incompetent Managing Agent
        by eagle2
        The idea of a RTM Company is to remove yourselves from the freeholder, so I am not sure why you would wish to choose an agent recommended by the freeholder, but you can always suggest a trial and see how you get on.

        The leaseholder can resign from the RTM Company but you will still have...
        27-09-2021, 15:30 PM
      • Leasehold sweetener?
        by Bonehead33
        So the flat I'm considering will apparently come with a new leasehold of 99 years. If I pay full asking price (10k more than I think it's worth) then the flat will come with a 125 year lease. I'm new to leasehold. Is there any benefit to getting the 125 and paying extra? The flat is around 100k to buy...
        26-09-2021, 16:35 PM
      • Reply to Leasehold sweetener?
        by AndrewDod
        The service charge could be absolutely anything - may be £500 this year, but £20,000 next year, or even more when you find yourself one of the 1% of properties with cladding issues (or whatever comes next).

        As eagle2 says, service charges (and service charge fraud) are where all the bodies...
        27-09-2021, 12:31 PM
      Working...
      X