Negotiating terms of informal offer

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    Negotiating terms of informal offer

    My property: 1 bed flat outside London approx 180K. My current lease: 67 yrs remaining. Landlord offer: £17200, 200 yrs from now. GR: £250 pa reviewed 10 yearly + RPI increase.
    Can anyone advise on what I go back with to make this more favourable without getting flat-rejected. Not happy with ground rent. Thanks

    #2
    I believe from previous posts your ground rent is £100 - therefore the premium is about right, but the imposition of the ground rent adds another £5,000 - £6,000 to the premium sought. However, the legal costs and valuation fees of a statutory claim could well cost you around £4,000 to £5,000.

    I would go back and advise that a statutory claim would see the premium at £17,000 and that if they accept the premium with perhaps the same ground rent as you have at present you would complete immediately - they get more than the statutory premium, and you save a fair amount on legal and surveyors fees but take on a burden of £100 per annum

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      #3
      Forgive me but I’m not sure I follow. Why would the premium of a statutory claim be less than the informal offer, as it would incur no ground rent? And surely they aren’t arsed about how long it drags on for as their fees are paid by myself

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        #4
        Ideally I want the ground rent to be £100 pa as I don’t think this would put off buyers, so would it be feasible to offer 18 or 19K in return for that. That way I’d pay 2500 in fees. 21K total. Whereas if I went statutory route I’d be looking at nearly 25K as the premium would be higher as well as costs

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          #5
          Seems like a fair offer, the freeholder might be happy with "100 ground rent if he thinks you will go formal route otherwise

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            #6
            It is possible with the proposed government reforms the landlord may get less - I personally think that the savings for lessees will come from making the landlord carry his owns costs - because of this uncertainty you may we’ll find the landlord may be more open to negotiation

            I think making any offer on the basis you complete promptly will be more appealing to the freeholder

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              #7
              Hi folks, just a quick update...I'm going formal on the lease extension and was hoping that someone might have some experience with {name removed}. I'm considering using them for the lease extension process as they offer a fixed fee that is a few hundred pounds less than a solicitor. But what has me worried now is that they've asked for my money before confirming a date to start the work. There's google and trustpilot reviews, but are they legit?

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                #8
                Originally posted by Chow View Post
                Hi folks, just a quick update...I'm going formal on the lease extension and was hoping that someone might have some experience with ********. I'm considering using them for the lease extension process as they offer a fixed fee that is a few hundred pounds less than a solicitor. But what has me worried now is that they've asked for my money before confirming a date to start the work. There's google and trustpilot reviews, but are they legit?
                Forum rules prohibit us from naming & shaming particular companies but I have used the one mentioned and they are definitely legit and knowledgeable. Please PM me if you want more info.

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                  #9
                  Originally posted by Section20z View Post

                  Forum rules prohibit us from naming & shaming particular companies but I have used the one mentioned and they are definitely legit and knowledgeable. Please PM me if you want more info.
                  see inbox. Cheers

                  Comment


                    #10
                    Most mortgage lenders will not offer mortgage loans if the frequency of ground rent increases is less than 21 years. So you should propose the ground rent starting at £100 p.a and rising to double last ground rent after every 25 years.

                    Alternatively, you can counter offer the "statutory 90 years lease extension" will take you to 157 years lease at peppercorn ground rent.

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