Extend lease now or wait?

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

    Extend lease now or wait?

    We have a short lease (79 years remaining). With all the leasehold reform that is mooted is it best to extend now or wait?
    Thanks to Marina Sergides of Garden Court for this note of an interesting County Court possession claim, defended on public law grounds. Tower Hamlets LBC v Ali, County Court at Clerkenwell & Shoreditch. 21 July 2021 Tower Hamlets (“TH”) brought a claim for possession against Mr Ali after his mother, a secure tenant, died. His […]

    #2
    It could take years for any leasehold reform to take effect, so I'd extend now using the statutory route for adding 99 years at nil ground rent.

    Comment


      #3
      The principal area where savings would be made for those with leases under 80 years is the abolition of marriage value that’s has been proposed

      however this would be subject to a very strong challenge by the great estates in London and their attack may be centred around a revision to the deferment rate used currently 5% - there is a very compelling case for lowering this from the rate set in 2006 - Sportelli following the collapse in the risk free rate which since 2006 has fallen from 2.5% to MINUS 0.25% - if the deferment rate fell by just 1.25% to 3.75% then this would compensate for the loss in marriage value - yet would make the formula easier and quicker which meets with the government objective

      Therefore if you are confident that the government will push through its reforms successful without any modifications then it would appear worthwhile waiting

      However most commentators are not that confident and expect there to be a great deal of horse trading and appeals to the European Court of Human Rights and expect the outcome to produce only modest savings - therefore you should press ahead sooner rather than later as the cost of a statutory lease extension once the term has gone below 80 years rises quite sharply

      my own view is that meaningful savings could be had if landlords paid their own fees during lease ext or enfranchisement especially if they acquired their interest post 1993 - this could save a some £3k - £4K to the lessee

      Comment


        #4
        Thanks for the responses. When you put it like that, then yes, I think it might be more prudent to extend now. When the lease extension reforms were first mooted it sounded as though implementation was imminent and now it appears to have fallen by the wayside ..

        Comment


          #5
          The proposals would have enormous negative impact on the value of freeholds and it is expected there will be an enormous pushback from those with influence

          Proposals that ground rents be capped in the enfranchisement / lease extension process is going to be confrontational - suggesting that this needs to happen as lessees were unaware of what they were signing up to or that ground rents should only have been a token sum - are weak arguments as the lessee was represented professionally in the transaction and would have profound impact on other contracts and how the rest of the world views the strength of contract law conducted in this country

          the government appear to using the CMA to deal with the issue of 10. & 15 year doubling ( a possible acknowledgement that capping ground rents through legislation retrospectively is far to challenging ) after those two types of rent have been dealt with what is left ie ground rent above £250 perhaps linked the RPI is hardly the stuff of nightmares to warrant the government to go into battle at the European Court of Human Rights

          Comment

          Latest Activity

          Collapse

          • Isn't there any obligation to be insured?
            by Sarah17
            Hi All,
            I recently bought a flat and learned since that the flat above is a regulated tenancy. The current tenant has moved in 1972. The flat is in a very shabby state, and I am worried about it (safety concerns, fire risk...etc). I wrote to the landlord and didn't receive any answer yet. A few...
            16-01-2022, 17:57 PM
          • Reply to Isn't there any obligation to be insured?
            by Sarah17
            Hi All, many many thanks for your answers. As it is a regulated tenancy (beginning in 1972), indeed the rent is very low, the LL is doing the minimum expecting the tenant to move. I had the opportunity to look inside, it sounds in a very bad state, but I don't know up to which point this is just a...
            23-01-2022, 17:14 PM
          • Reply to Adjoining garage roofs
            by NaomiB
            I'm afraid there is not the slightest chance that the roofs will all be done at once so that one's out. Although the flats are managed well, the garages never have been. The other garages in that block of six are owned by the freeholder. With him, it's a case of 'I won't do anything unless I can get...
            23-01-2022, 17:05 PM
          • Adjoining garage roofs
            by NaomiB
            A year ago I bought a run down garage with a leaking roof. I thought I would be able to fix it with Flashband but it was impossible. I got a new roof and door and let it out to a neighbour. The flats are managed but the garages are not.

            Yesterday I got a text from the owner of the adjoining...
            10-01-2022, 07:19 AM
          • Reply to Adjoining garage roofs
            by JK0
            I don't think you'll hear from your roofer, Naomi. I refer you to what I said before.



            Whatever he does will be done grudgingly, even if you get trading standards involved. Do you really want him to come back to do more of the same?

            As before, the roofs need all...
            23-01-2022, 16:48 PM
          • Reply to Adjoining garage roofs
            by NaomiB
            I wrote to my roofer on 10 Jan but have had no reply. On Thursday my son went up to get better pictures. They show that the rubber has flapped right back and needs re-fixing. I wrote to him again on Friday but haven't had a reply. I am worried he is going to say it's wind damage but surely, with...
            23-01-2022, 16:15 PM
          • Reply to Freeholder failure to maintain
            by Babyspice
            I would suggest writing to ur MP to raise awareness on this issue. They might be able to help. U can also contact the LKP team for their opinion to see what they suggest in ur situation....
            23-01-2022, 14:59 PM
          • Freeholder failure to maintain
            by Catastrophiser2020
            What to do about a freeholder that doesn't maintain property?
            Unfortunately right to manage is not an option
            There is damage to my property due to FH failure to repair...
            22-01-2022, 20:36 PM
          • Reply to Voting Rights and Required Percentages
            by Arizona
            Thank you for your swift response.

            All five leaseholders have been in residence here for 20 years. We own our own management company and have managed very well up to now because so far we've all agreed on everything. It's just that we would like an idea of the percentages just-in-case,...
            23-01-2022, 12:59 PM
          • Voting Rights and Required Percentages
            by Arizona
            Good Morning. I'm brand new to this site so I apologise if this question is in the wrong section.

            My wife and I live in a self contained apartment in a converted old house. There are five apartments in total, occupied by five separate couples. We are all leaseholders and we collectively,...
            23-01-2022, 08:52 AM
          Working...
          X