Leasehold Extension Advice Please.

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    Leasehold Extension Advice Please.

    Hi. Im hoping some of you who are clued up with extending leases could help me out.

    I have a 2 bed first floor maisonette which is let out. The lease has 62 years unexpired and the ground rent is £250 per annum. The maisonette directly below sold at auction last year for £62000 so I guess that is a good guide? It had the same lease issue. I estimate the value after extension to be around £76000.

    What would be a fair price for a 90 year lease extension with nil ground rent?

    I am also going to get some quotes for solicitors fees. What prices do you think would seem reasonable?

    Thank you for you help.
    John.

    #2
    Originally posted by bandontherun
    The £250 pa ground rent is unusually high and pushes the premium significantly ( Work out how much dough you'd need to put in the bank to get £250 per annum in interest....lease extensions are still, arguably very cheap) There must be a bit of a story there as such a high ground rent would not be likely to have been set 37 years ago as the result would have been that the then landlord would probably have become liable same as a rent rented landlord for the repairs as if this was a statutory letting.
    Thanks for the reply.

    The maisonette was built in 1975 with a 99 year lease. The ground rent was £30 PA for the first 33 years and was reassessed 4 years ago to £250 PA for the remaining 66 years as per the lease agreement.

    £13000 sounds a little higher than I was hoping. I was hoping more like £9000 - £10000 + fees but I shall see what they quote me.
    Is it best to send an informal letter to the freeholder first in order to get an initial price, and afterwards go to a solicitor for the negotiations?
    Cheers.

    Comment


      #3
      1. The procedure for statutory 90 year lease extension can be obtained in a free guide which you can download from www.lease-advice.org

      2. The cost of lease extension is usually provided best by a Chartered Surveyor working in a estate agent local to your property.

      3. A rough cost of the lease extension can be calculated by the method posted by our expert scglacy under LZforum thread No. 11080 .

      Comment


        #4
        Thank you both for your advice. Using the method from scglacy I think the cost should be around £9150 +fees....but I will see what the freeholder thinks.

        Comment

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