Urgent info needed on Lease Renewal/Ground Rent increase.
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I guess it also depends on what your plans are, if you are planning to sell, then the 99 year lease will be plenty for any buyer, but if you plan to stay put then go the statutory route as in 17 years you will be extending again.
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I find a good yardstick is to say
"looking around can I find a similar flat ( assuming the flat and block are in good order) on £250 a year, for 99 years, for £142000?"
If so, then it adds up, if not then the offer price is likely wrong and that of course changes the premium calculation
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Would I be looking at paying a higher initial amount than the £12,000?
So I should be expecting a total outlay to be around £15,000 if I continue on the route set by the freeholders?
Thanks for your help!
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Doesn't sound great to me.
You will probably be better off going along the statutory route to extend your lease by 90 years at peppercorn (nil) rent.
As long as you and the building qualify, there are some exemptions
Check out- http://www.lease-advice.org/publicat...ent.asp?item=8
From what you have said you should be looking around £11k to £13k plus valuation and legal fees, yours and landlords around £2k to £3k.
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Urgent info needed on Lease Renewal/Ground Rent increase.
Hi,
I'm in the process of renewing my lease on my 1 bed flat worth around £130,000. However I need some advice on whether the terms suggested by the freeholder seem reasonable.
I have 64 years remaining on my lease.
I currently pay £45 ground rent pa.
The freeholder has quoted me £12,000 to renew to a 99 year lease. I am told this is reasonable, however the freeholder has not given me any information on how he came to this price.
Within the quotation are a number of terms, including:- Ground rent to increase to £250 pa. (Doubling at 25 year intervals.)
- Payment of their fees equal to £475 + VAT.
- Payment of client's legal costs. (This is where my lack of knowledge of the area shows! I do not know if the client in this case means myself, or a client that they are acting on behalf of)
Does this sound correct or is my lack of thorough understanding being exploited?
Thank you in advance to anyone that can offer any insight,
James.
Latest Activity
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by CenturyUnited Scientific Holdings v Burnley Borough Council
Does this case mean that for a residential lease failure to give notice of GR increase during the review period doesn't matter? I.e review can be at any time, even after specified review date?-
Channel: Long Leasehold Questions
11-08-2022, 14:47 PM -
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Reply to Ground Rent reviewby CenturyAs promised...
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Channel: Long Leasehold Questions
12-08-2022, 05:47 AM -
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Reply to Freeholder Premium to consentby AndrewDodNo unless the lease says so, you don't generally need consent to replace a bathroom or a kitchen...
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Channel: Long Leasehold Questions
12-08-2022, 01:33 AM -
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by LimplyHi all,
I am looking at extending my leasehold flat by adding a newbuild next to the loft (will be erected on top of the first floor). I have just asked my freeholder for the process to follow. In the past they have asked me to pay a "Landlord’s premium for the consent to be established...-
Channel: Long Leasehold Questions
11-08-2022, 16:20 PM -
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by landingHello!
Any disadvantages of Share of Freehold?
Also why some say 'Freehold/Share of Freehold' but also mention 100 years left on the lease?
Thanks!-
Channel: Long Leasehold Questions
11-08-2022, 20:52 PM -
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by SouthernDaveWe’ve got one that is set up like this. We must be lucky as we’ve had no bother at all and get on really well with the other 3 owners. It’s actually given us the opportunity to buy more of the units.
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Channel: Residential Letting Questions
11-08-2022, 22:57 PM -
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Reply to Freeholder Premium to consentby LimplyMany thanks both for your answers.
Anyone has view on the last part of my query? (re. replacing the bathroom and kitchen)-
Channel: Long Leasehold Questions
11-08-2022, 22:43 PM -
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by AndrewDodSimple answers in reverse order
Share of freehold does not mean you do not have a lease. You still have a lease which has a fixed term (and you are still bound by all of the obligations under that lease). All it means is that you are a joint owner of the freehold.
Plenty of...-
Channel: Residential Letting Questions
11-08-2022, 20:58 PM -
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Reply to Freeholder Premium to consentby AndrewDodThe simple answer is no you can't do what you think you can. At the very least you would probably need to pay the FH at least 50% of the uplift in value of your property. The "not cutting timbers stuff" is not relevant to building something outside of your demise.
The FH might...-
Channel: Long Leasehold Questions
11-08-2022, 20:12 PM -
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Reply to Freeholder Premium to consentby LimplyMany thanks for the answer. I am already looking at buying the freehold title. Just need to convince the other leaseholder!...
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Channel: Long Leasehold Questions
11-08-2022, 19:15 PM -
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