New lease extension - and question of loft space

[PGannon]

Hi,

I have been going through the process for some time of agreeing a lease extension with my current freeholder. An application was served to the LVT but agreement was reached prior to hearing.

The property is a 1st floor maisonette. Property is terraced and on the ground floor is a garden flat.

The flat has 68 years unexpired and what has been agreed is an additional 90 years on top at peppercorn ground rent. Property is valued at £270K.

Current terms; 99 years from 25/12/81 at £50 ground rent for 1st 33 year; £100 for next 33 years and £200 for final £33 years.

Premium agreed is not cheap;
premium - 16,725
valuation fee - £1,020.00
freeholder solictor fees - £1,260.00

Total: £19,005.00

PS: That still excludes my own solicitor fees of £900+ all inclusive.

problem is that the current lease does not include the loft space. I want it included. Freeholder and Freeholder solicitor have said they would consider it, subject to satisfactory terms, and only after the lease extension transaction has been completed first.

However, I think it is not in my interest to conclude the lease extension without including the loft space as well. But is there anything I can do to force the freeholder to include this space?

As an added pressure, my solicitor has advised I need to complete the current lease urgently or else it will be deemed that my application has been withdrawn.

thanks,

Patrick

[leaseholdanswers]

No.

Your only right is to extend the existing term. The LL is indemnified for his costs if you pull out and the LVT can only extend.

It's a matter of negotiation.

[PGannon]

OK.

And can the freeholder quote a price of whatever he likes - and then it's a case of take it or leave it?


Also, given the flat value of £270K, what is a reasonable price for a freeholder to charge (although i suppose it is down to how desperate I want it)?

Final question. If I went ahead and did a dormer loft conversion in any case, without the freeholder consent - could i be forced to take it down?

thanks,

Padraic.

[Gordon999]

The valuation method of cost of statutory 90 years lease extension is in a free guide which can be downloaded from www.lease-advice.org . A rough cost for comparison can be found by the calculation method given in thread no. 11080 previously posted by our expert sgclacy.

Remember a lease is only a long term rental agreement for a specific demised area within a building and the leaseholder does not own any part of the property. The freehold still owns the roof loft space and not yours to convert.

The premium agreed at 16,725 pds will increase your lease from 69 years to 156 years at Nil annual ground rent. Check if the other G/F flat has extended its lease from 68 years to 159 years ? If so then consider jointly buying the freehold title as cost will be very little if no annual ground rent is received.