Lease extension

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Lease extension

    Hi all,

    just to refresh info!
    My husband and I are the freeholders, we have been asked by one of the leaseholders to come up with a premium for a lease extension for his flat. he has asked that we do it privately which we don't mind.
    His lease is from 1/12/97 Ground rent is £50 for the 1st 33 years, 2nd 33 years £100 and £150 for the last 33 years. The flat is worth £145'00 - 150'00.
    I would like to offer him ideally a low premium for a high ground rent, but he has indicated that he would rather a lump sum payment with no ground rent! He has asked me to put together a few suggestions for him to think about. He wants to go forward with the lease extension in the next year. Any Ideas what I should offer him?
    I have thought of £4'000 plus £500 for our costs. (and i will tell him we will not instruct a valuer)
    for 90 years + his current term with nil ground rent.

    Or £2'500 plus £500 for our costs to make the term up to 99 years,with the same ground rent as he had befor

    Or £1'000 plus £500 for our costs to make up term to 125 years with ground rent of £250 fixed.

    #2
    Hi Hollyhead,

    As a freeholder why wouldn't you want to keep ground rent and increases? This protects your investment and keeps value in it.

    Unless you are desperate for cash right now I would offer lower premium and keep ground rent.

    Comment


      #3
      Hi rg41,

      Thank you.

      I quite fancy having both scenarios! But I do see the point of having ground rent!

      He wants it in writing but I am loathe to do this for obvious reasons!

      Comment

      Latest Activity

      Collapse

      • Reply to Building works & S20 process
        by scot22
        It is relatively simple to administer process. However, definitely engage professional to define necessary work and project manage.

        If I can, anybody can.
        21-05-2022, 20:19 PM
      • Building works & S20 process
        by RichA
        Hi. I have a freehold after selling a leasehold flat in a block of 4 flats. We don't currently have a managing agent, so these duties currently fall to me (I am holding off appointing a managing agent whilst the leaseholders consider whether they want to RTM).

        The block needs some maintenance...
        21-05-2022, 17:20 PM
      • Reply to collective enfranchisement
        by Tipper
        Ask lease-advice.org
        21-05-2022, 18:59 PM
      • collective enfranchisement
        by flyingfreehold
        Does a leaseholder have to be a registered proprietor to join a collective? Or is it sufficient for her/his/it to be a transferee whose interest is not yet registered?
        21-05-2022, 18:51 PM
      • Reply to Levy
        by scot22
        Thanks Gordon. There was no info other than amount and invoice which explained nothing !
        21-05-2022, 17:16 PM
      • Reply to Share of feehold/shared service charges?
        by Macromia
        They are correct that the purchase of the freehold has no relevance (although it would allow the three of you to alter the leases if you are all in agreement).

        Unless you alter the leases you continue to split service charge costs according to what the terms of your leases say - sharing...
        21-05-2022, 17:14 PM
      • Changes to lease wording
        by bigalxyz
        In the process of buying freehold for our building. 9 participants (from 11 flats).

        Our solicitor will extend leases to 999 years for an additional fee if we want to. She has asked, as part of that extension process:

        “Are there any amendments that you are seeking to make...
        14-05-2022, 12:27 PM
      • Reply to Changes to lease wording
        by Lawcruncher
        If the leases are going to be for 999 years there is not a lot of point imposing a restriction in such terms. It is also open to interpretation. You have to decide first if you are going to allow subletting at all. That has to depend on what people want. If any owner already sublets then you cannot...
        21-05-2022, 17:09 PM
      • Reply to Levy
        by Macromia
        ...And it still going to depend on what it is for (and on what your lease allows to be charged for, and when.

        Service charge demands have to include details such as a service address for the freeholder, and have to be accompanied by an appropriate copy of 'leaseholders rights and responsibilities',...
        21-05-2022, 16:53 PM
      • Reply to Changes to lease wording
        by Lawcruncher
        The solicitor has said: "Are there any amendments that you are seeking to make to the leases once you have acquired the freehold? Any important amendments should be detailed in the PA so that the parties know they are bound to comply later on. Please do let me know your thoughts." That is...
        21-05-2022, 16:49 PM
      Working...
      X