Lease Extension Cost

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    Lease Extension Cost

    Hi.

    I'm trying to find out what the cost would be to extend the lease on a property with 17 years unexpired to 99 years, ground rent is £30 p.a, value of property after extension would be £140k.

    The original lease was only for 50 years, so would a 'marriage value' still apply, as I am led to believe this is applicable on leases with less than 80 years left to run.

    #2
    You can download a free guides on statutory 90 years lease extension and calculation of cost for statutory extension from www.lease-advice.org . You can send an enquiry to LEASE about your situation .

    Comment


      #3
      Gordon999,

      At 17 years most on line calculators do not give any guidance

      Expect to pay around 50% of the value of the flat if it has a long lease so in this case £70k. Budget for around £1.5k and possible more from the freeholders valuer and solicitors and the same for your own.

      In view of the % that is payable of the value of the flat the valuation could become contentious but remember you only pay the landlords initial valuation. Time and costs in arguing over the value cannot be recovered by the landlord

      Comment


        #4
        Thanks for the response sgclacy, I followed a calculation that I found on a previous post of yours and got to a figure of £74k.

        £30.00 / 0.08 = £375.00

        £140,000.00 / (1.05^17) = £61,082.00

        £140,000.00 x (100% - 38% = 62%) = £86,800.00

        £86,800.00 - £61,082.00 - £375.00 = £25,343.00

        £25,343.00 / 2 = £12,671.50

        £61,082.00 + £12,671.50 + £375.00 = £74,128.50

        Does that look about right?

        Comment


          #5
          Yes, and there will be some latitude in that figure as there are very few deals done at that term remaining so evidence between the expert surveyors will be thin in the ground

          Comment


            #6
            Is there any way I could work out what it would cost to buy the freehold? Just so I can then do a comparison between the two figures.

            Also I may potentially let the property out in the future and think that the current lease doesn't allow subletting (paragraphs below), so purchasing the freehold would also solve this issue.

            'Within one month after every assignment assent transfer or under lease of the demised premises to give notice thereof in writing with particulars thereof to the Landlords solicitors and to produce to them such assignment assent transfer or under lease or in the case of the devolution of the interest of the tenant not perfected by an assent within twelve months after the happening thereof to produce the Landlord the probate of the will or letters of administration under which such devolution arose and to pay the landlords solicitors a reasonable registration fee and their proper disburse nets for the registration of each such assignment assent transfer under lease or devolution'

            'Not at any time during the term hereby granted to divide the possession of the demised premises by an assignment or under letting or parting with possession of part only and not during the last seven years of the term hereby granted without the previous consent in writing of the Landlord assign under let or part with possession of the demised premises'

            From reading both paragraphs I'm not sure if I can sublet, or if I can but a registration fee would be payable? Any idea what the current rate is for a registration fee if that is the case?

            Comment


              #7
              Are you asking questions about a leasehold house or leasehold flat in England or Wales ?

              Comment


                #8
                Leasehold flat in England.

                Comment


                  #9
                  You cannot buy the freehold to your flat only of the building that it sits in, if a majority of owners wish to do so, or the landlord agrees to sell it to you , and the others decline to join in.

                  On your post , you cannot sublet the whole or part, except you must obtain consent to sublet the whole in the last 7 years. Notice will have to be given as well. Now do read the whole lease as there may be a further covenant in the lease.
                  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


                    #10
                    Thanks for your reply.

                    The building contains two flats, mine and the other flat which I believe is owned and potentially occupied by the freeholder.

                    So from what your saying I can't sublet, but can do with the freeholders consent in the last 7 years of the lease?

                    I have read through the whole lease and there are no other sections / paragrahps relating to subletting.

                    Comment


                      #11
                      Originally posted by Shaun23 View Post
                      Leasehold flat in England.
                      You should buy a copy of the leasehold titles for the other flats in block from Land Regsitry Online and find out if the others have extended or not ?

                      Comment

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