short existing lease allowing holiday lets or new long lease excluding holiday lets

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    short existing lease allowing holiday lets or new long lease excluding holiday lets

    Deliberating over whether to buy Studio Flat with 51 years on existing

    lease and able to rent out on holiday lets so we can use the Studio ourselves then try and negotiate new 999 year lease but they want to put new clause in for no holiday lets Its more suited to this use as is only 45sq m Studio flat Its on Brighton sea front. No Mortgage needed or do we wait and sign with new lease excluding holiday lets and try to negotiate licence to vary the lease either as personal to us or excluded completely from the new lease

    Does any one have similar experiences of changing leases What are average costs , only 9 other flats as they are all in processs of upgrading the leases

    #2
    If holiday letting is what you want then why not get the existing lessee to apply for the statutory 90 year lease extension as part of the sale? You then get your flat with 141 year lease. You pay the costs of course otherwise the sale price may go up.

    Comment


      #3
      If the other flats have to extend their leases , then consider collectively purchasing the freehold with the other leaseholders.

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        #4
        Are the other leaseholders agreeing to a no short let clause in their upgraded lease?

        If so I agree that extending using the existing owners immediate application, and assigning it you, for the 90 years extension, is best, though the LL might try to ask the LVT to exclude short lets as part of granting that extension.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #5
          Thanks for your replies
          Yes they are upgrading leases (leaseholdanswers ) we will have share of freehold if we buy obviously best option is too sign with new lease with holiday let clause removed see how things progress in coming weeks.

          Comment


            #6
            You are not grasping it. Being part of the freeholder group is irrelevant.

            If the freeholders, apparently the current leaseholders as a group, are the ones discussing the new lease with the new clause preventing letting, then unless they give in, you need to look at the statutory lease extension as they have to make the case for amending the lease term at the lvt.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              Trying to grasp it

              As cost of statutory lease extension would be

              in order of £19000 approx working out by following some of the cost threads

              Lease lesft 51 years
              Ground Rent £15
              MV without lease extension £115000
              MV with lease extension say £125000

              Is this a true reflection of costs if we go down the 1993 Act for 90 year extension of existing terms in lease as is getting unsustainable

              Regards

              Comment


                #8
                No way is a lease of 51 years only £10k less than one with a 51 + 90 or 999 year lease.

                I suggest you get a local valuation on a lease extension from say http://www.psandb.co.uk/ or other local firm.

                The main point is then price aside is that if you negotiate a lease they will want a no holiday let clause, so its take it or leave it.

                if they won't agree and you go down the statutory route they would have to take it to the LVT to ask that the lease be changed, and this is an argument they have to make to persuade the panel that they are right.

                The fact is that in small blocks holiday lets are a complete pain, people coming and going at all hours and often not respecting the building is a home to the others, as well as the wear at tear on carpets walls etc. Its a case easily made...
                Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                Comment

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