Informal Lease Extension - Good offer?

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    Informal Lease Extension - Good offer?

    Hi

    I have a leasehold flat managed by housing association on behalf of a local authority. I contacted the HA to request the cost of extending the lease via the informal route and I have now received their offer.

    A slight twist - The lease remaining as far as I was aware was 89 years . This was confirmed by the HA when i enquired about the lease extension. The Title Deed from land registry says Lease starts 20th Feb 1989 and expires 20th April 2111 (=122 years) BUT the term of the lease on the deed is stated as 125 years. I remember querying this with the conveyancer at the time i purchased the property and she said "The lease is for a term commencing on 20th February 1989 and expiring on 6th April 2111. The reference to 125 years on the cover sheet is because it's a standard document produced by the local authority and that should probably have been deleted - it's what's written inside the lease itself that counts.



    Following conveyancing for the lease extension , the HA has now come back with an extension offer and stated that the lease left is 92 years.

    My calculation on the lease advisor website shows a range between 3-5K and the offer from the HA is very close to the lower amount at a peppercorn rent of £10 and extension by 90 years to 192 years.

    No changes to existing terms as far as I know and I have asked for written confirmation of this.


    Questions

    - Can I still put forward a counter offer although I think the current offer is more than reasonable but still, if you don't ask.
    - If i had been aware it was 92 years, i would not have started the lease extension request. Any advantage in delaying other than to avoid stretching my finances at the moment?
    - Anything I should be concerned about with this offer?
    - Do i need to use a solicitor for my part of the process or can I DIY. If DIY , any tips on what i need to do? The HA asked me to supply details of my solicitor so I checked a couple of solicitors and the fee seems disproportionate to the work that they would need to do. (In the rage of 1k+) Im not sure if they will go ahead without me providing a solicitor.


    Thanks


    F

    #2
    I think this is an occasion where you keep mum & bite their hand off. Any querying, is likely to make them look more closely.
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

    Comment


      #3
      You should as JK0 advises accept the offer.

      You can act for yourself if there is no mortgage over the property.

      Comment


        #4
        The problem with acting for yourself is registration. It falls to the leaseholder to register, And the Land Registration act of 2002 said that the effect of grant arose out of registration, registration is more than simply a matter of recording it. You could in theory register it yourself but it is quite fiddly. If you are prepared to keep trying by all means have a go, but keep going even if HMLR rejects the application first or second time

        Comment


          #5
          You can register yourself, but you may need to visit a Land Registry Office to show proof of identity ( your passport).

          Comment


            #6
            The process has been made a lot easier with form ID5 which a specialist company can deal with for around £80 all done over internet using teams/ zoom

            https://www.id5.co.uk/

            They acted for a friend of mine and it was all very straight forward

            Comment


              #7
              Thank you all for your responses. I still have a mortgage on the property so is regristration the only thing i need to do once the offer has been accepted and paid for?

              I will put up another post to request solicitor recommendations. I can then decide which way to.go.

              thanks

              Comment


                #8
                I'd use the solicitor I used to buy the place, surely? They'll have all the paperwork stored somewhere, so would likely be your cheapest option.
                To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

                Comment


                  #9
                  Great point.. Defintely worht trying although I bought the property nearly 9 years ago .

                  Comment


                    #10
                    I think probably a false economy DIY conveyancing especially of leaseholds. If you have a mortgage you would need a deed of substitute security and the lenders will probably not let you act for them as would a "panel solicitor", ie a non one man band firm of lawyers whose practicing certificates are not restricted. There are some lawyers out there who are allowed to call themselves solicitors but who have got into such a muddle with their files or clients account that they are not allowed to run their own firms. Sometimes they are knowledgable lawyers but not sufficiently organised to keep the books as well as run their files.

                    Comment


                      #11
                      Thanks. I am inclined to use a solictor just need to find one. The company that did the conveyancer seem to have to no longer be in business.

                      Comment


                        #12
                        I have sent you details of someone very capable and reasonable by private message. Based in North Lincs but operates nationally. Unlike most solicitors also has a very good grasp of valuation.

                        Comment

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