A new lease.

[Trevor62]

I have been enquiring about a flat that I am interested in, I got this email from the agent:


1. a new lease will be issued upon completion of 125 years
2. Ground rent is currently £75 per annum but could increase SLIGHTLY once the lease has been extended
3. The huge demand for two beds in the area can generated a rental income of approx £950-£1000 per month.
4. Insurances are arranged with the owner directly, something i will have to ask him.

Could someone advise me here please.

The previous lease still has 98yrs to run.

When the agent says "a new lease will be issued upon completion of 125 years", does this mean that it will already be paid for leaving no cost to me?

Shoulds I ask that the lease not be renewed so I can renew it negotiating a peppercorn lease?

[leaseholdanswers]

It depends how much you are paying for the extra 27 years and how much rent you are going to pay, "slightly increase? **** off and give me a figure " would be my reply

vs

the price as is and the cost of a statutory extension of 98 - 2 years waiting time, 97, plus 90 years and no rent.

Building insurance is normally arranged by the freeholder. You would take landlords cover for the flat and risk as you see fit, where a building policy does not provide cover, eg contents owners liability etc.

[Trevor62]

It depends how much you are paying for the extra 27 years and how much rent you are going to pay, "slightly increase? **** off and give me a figure " would be my reply

vs

the price as is and the cost of a statutory extension of 98 - 2 years waiting time, 97, plus 90 years and no rent.

Building insurance is normally arranged by the freeholder. You would take landlords cover for the flat and risk as you see fit, where a building policy does not provide cover, eg contents owners liability etc.

Yes, it does depend on how much rent.

[leaseholdanswers]

And the rent is.....