Lease Extension Costs Too High?

  • Filter
  • Time
  • Show
Clear All
new posts

    Lease Extension Costs Too High?


    I hope somebody can help me I am very confused about how the whole leasing system works.

    I live in a 2 bedroom flat which I am trying to sell. It has been valued at 220,000 and has 77 years remaining on the lease. We may not actually get 220,000 but hopefully it would not be far off.

    However, our estate agents have advised us that the most common question being asked by prospective buyers is 'how much would it cost to extend the lease' or 'can the lease be extended prior to the sale'.

    We pay £100 per year ground rent and were looking to increase the lease from 77 up to 99 years.

    Looking at various websites and making some rough calculations we came up with around £5000 to do this but our freeholder says he calculates a much higher figure, in excess of 20,000. I find this hard to believe and my estate agent laughed and said it was ridiculously high.

    Does anybody have any way of calculating what would be considered reasonable to extend the lease by 22 years under the current terms? or should we be taking things into our own hands further and going for an increase of up to 150 years with peppercorn rent.

    Any help would be really appreciated.

    There is a Leasehold Advisory Service calculator- try here:
    If you have owned for at least two years, you have a statutory right to a Deed of Surrender and Regrant. This would:
    a. add 90yrs. to your term; and
    b. reduce ground rent to a peppercorn [no-money rent].
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).


    Latest Activity


    • Reply to Old managing agents accounts
      by jazzythumper
      would this be a good starting point?
      25-05-2022, 15:37 PM
    • Old managing agents accounts
      by jazzythumper
      Since obtaining the RTM and changing the managing agent, we have never been given full accounts / receipts for the previous year(s). We believe that as the old freeholder and leaser holder of one of the flats were represented by the same solicitor that prior to the sale of the freehold, we were subsidising...
      20-05-2022, 11:21 AM
    • Reply to Old managing agents accounts
      by jazzythumper
      As in a simple application to the old managing agent Or freeholder? Which one?

      To provide all accounts and payments based on the fact that we disagree with the charges? How far back can we go? And does having paid the service charges mean we have agreed to these?

      Thanks for...
      25-05-2022, 15:31 PM
    • Reply to Freehold confusion
      by Section20z
      It's never advisable , it can cause serious issues if you have a claim affecting communal areas. For buildings insurance the whole property should be covered and the cost split between the two flats.
      The only problem with an absent freeholder is that when selling the flat a pernickity solicitor...
      25-05-2022, 10:02 AM
    • Reply to Share of feehold/shared service charges?
      by Stu1020
      Thank you for the response....
      25-05-2022, 09:40 AM
    • Reply to Freehold confusion
      by AndrewDod
      There is no cast iron rule that the freehold "share" has to be transferred with any sale. You may need to purchase it from the friend (or his estate)....
      25-05-2022, 09:22 AM
    • Share of feehold/shared service charges?
      by Stu1020
      Hi there,

      I'm new to the forum and looking for advice on a sticky freehold situation.

      I own a two-bed flat in a converted building with two one-beds. The lease states that a fair proportion is payable towards the service charge. However, there has been a running agreement of...
      20-05-2022, 11:39 AM
    • Reply to Share of feehold/shared service charges?
      by eagle2
      I suggest that you ask the other 2 leaseholders to explain why they consider that the current allocation is fair. The freeholder has the right to review the allocation from time to time. Unfortunately, a "fair proportion" means that several alternatives would be considered reasonable to a...
      25-05-2022, 06:27 AM
    • RTM Hand Over Issues
      by martin15
      RTM handing over issues

      Our RTM companies comprise 4 blocks of 6 identical two bedroom flats and each block is registered at Companies House as a separate company.
      Following the acquisition date, it was discovered the former directors ignored legal advice and changed property management companies...
      23-05-2022, 19:36 PM
    • Reply to RTM Hand Over Issues
      by eagle2
      You appear to have a claim against the freeholder, not the individual companies, who are acting as agent for the freeholder. A Tribunal does not have the jurisdiction to deal with monies which should be handed over, it is a matter for the courts,
      25-05-2022, 06:16 AM