Leasehold extension confusion

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    Leasehold extension confusion

    Help, please! First time poster, please bear with me!

    I have been trying to extend my lease for 18 months. There are 82 yrs left. I was hoping to go the informal route to keep solicitor fees down and move things swiftly, but it has just confused everything! I paid for a survey- my freeholder sent me the report and offered reasonable terms (additional125 yrs). His solicitor fees were high though, as he said it was due to it being a new lease. I then asked if we could just extend my current lease back to 99 yrs, thinking it would be quicker and cheaper sol fees. My freeholder has now offered the same price as previous, for an extension back to 99 yrs ( an additional 17yrs on current lease) and with ground rent x5 ( admittedly ground rent currently only £50 p.a.). This is apparently following the non stat route, but his solicitor fees are the same as before, so absolutely no benefit. I’m kicking myself for quibbling over the fees now, and realise I should just have accepted the stat route.
    My solicitor takes upwards of 2weeks to reply to my queries. Where do I go from here?
    Clearly the first offer was far more acceptable.
    I have already told the FH I’m ok with the fee, it’s the years that are the sticking point- I can’t afford this again in17 yrs time!
    I didn’t get my own survey done previously, as I felt the fee offered was fair- and still do- but do t now how to negotiate the years or get back to something like the previous offer! Would a surveyor be able to assist as my solicitor says nothing?
    sorry it’s long! Any advice gratefully received- added complication is time zone as I’m currently locked in Australia!

    #2
    Just tell him you'd like to accept the original offer. If he now refuses you may have to start the formal process.
    Make sure no onerous terms are added like rising ground rent, £250 may already be a concern outside London.

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      #3
      chuk the statutory route ADDS 90 yrs to the existing term (eg 82 + 90 = 172 yrs) and sets the GR to 0.

      do not accept any lease extension with GR included

      Comment


        #4
        Thanks for taking time to reply. I think he’s removed the original offer, so I took the step of getting my own survey done today, and will use them to help me negotiate from here. Prob should have done that to begin with, but didn’t realise my solicitor was there to process only, not advise. Live and learn! So stressful, I’ve found it really confusing to get my head around the different process needed. Stat route is def the way to go for me I think!

        Comment


          #5
          Write to your landlord and accept the first offer and see what happens.

          If above not accepted, under no circumstances go the informal route. Go the statutory route and + 90 years will be added to your lease and ground rent will be peppercorn (nil). You will be liable for the landlord's reasonable solicitor's and surveyor's fees and your own of course. However, there are rules about this so your freeholder cannot charge all and any legal fees s/he might incur.

          Further, if your property is out of London so not agree to a ground rent of £250 (as alluded to by another poster above) or a ground rent which reaches £250 during the term or you will find you have an AST. An unintended consequence of legislation.

          See the LEASE website.

          BTW, when a lease is extended it becomes a new lease even though it may include all of the original terms. This should not impact on the legal fees. It is a simple document.

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