lease extension nightmare

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    lease extension nightmare

    please can someone give me some decent advise?? in 2005 i bought a flat which was lease hold. I had no idea what the word lease hold meant as neither my mortgage advisor or my solicitor explained. So I bought this flat totally unaware that I would have to extend the lease very soon. When I bought the flat there were only 66 years left on the lease but this was never flagged. Its costing me more than ten grand to extend the lease, im in the process of doing so now. I want to sue my solicitor for not making me aware of the need for a lease extension, can anyone tell me if I have a cat in hells chance of success? I'm also in the process of complaining to the mortgage company

    #2
    Sorry, can't help with your question as I know nothing about leasehold properties, however, I'm intrigued. If you still have around 58 years left on the lease why is there such a desperation to renew right now?

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      #3
      A lease is only a long term rental contract which many start with 99 years or 125 years term lease. You pay a premium for the lease which as the term gets shorter, the premium value declines to Nil value when the property is returned to the freehold reversioner at the end of the lease term.

      The only way to protects its market value of the lease is to keep the lease term above 100 years by seeking a 90 years statutory lease. When you allow the lease to fall below 80 years terms before applying for lease extension the cost is higher due to the compensation formula introducing a payment based on 50% marriage value for the landlord. You can download a free guide on lease extension from www.lease-advice.org

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        #4
        Your solicitor was instructed I assume to act for you in the purchase of the flat. This he did and assuming you paid the market value at the time for your flat it would seem difficult to argue that you have incurred a loss.

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          #5
          As it was 66 years unexpired. unless its SW3 or similar then I am sure that they ought to have done so and I am sure one of the member solicitors would point to standard advice in their guidance manuals on leases of such a short length.
          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.

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