Hi

I have a flat in a block of 3. I have thought about trying to buy the freehold, but require participation with at least one of my neighbours, one of whom is trying to move and the other isn't interested. Maybe in the future I will have a neighbour who wishes to participate, however time is ticking by and I am now thinking of just extending the lease. I have 4 questions.

1) I reckon my flat is worth about £125,000. It is situated in Bexhill in East Sussex and has 78 years left on its lease. The ground rent is just £25 a year. I have read up on how these extensions are calculated but I can't work it out. I'm not sure how the yield percentages are factored into the equation. Rather at this stage than employ a surveyor to work it out I wonder if someone could tell me roughly how much it would cost to extend the lease.

2) I am on fairly good terms with the freeholder although she was missing until recently for a few years she has now reappeared. Can I make her an offer directly without too much involvement with notices/surveyors/solicitors and see what she says?

3) Given that she was missing for a about 4 years the lease is now below 80 years and hence the marriage value is now payable. I have had to spend money on a solicitor to deal with other problems related to the property that have occurred in her abscence including the costs of trying to locate her. Should I factor all this in to my offer for the lease extension?

4) If I extend the lease and in the future I buy a share of the freehold, will the amount I pay for the share be less given that my lease will be longer than those of the other leaseholders in the building?

Thanks

Rob

I have a flat in a block of 3. I have thought about trying to buy the freehold, but require participation with at least one of my neighbours, one of whom is trying to move and the other isn't interested. Maybe in the future I will have a neighbour who wishes to participate, however time is ticking by and I am now thinking of just extending the lease. I have 4 questions.

1) I reckon my flat is worth about £125,000. It is situated in Bexhill in East Sussex and has 78 years left on its lease. The ground rent is just £25 a year. I have read up on how these extensions are calculated but I can't work it out. I'm not sure how the yield percentages are factored into the equation. Rather at this stage than employ a surveyor to work it out I wonder if someone could tell me roughly how much it would cost to extend the lease.

2) I am on fairly good terms with the freeholder although she was missing until recently for a few years she has now reappeared. Can I make her an offer directly without too much involvement with notices/surveyors/solicitors and see what she says?

3) Given that she was missing for a about 4 years the lease is now below 80 years and hence the marriage value is now payable. I have had to spend money on a solicitor to deal with other problems related to the property that have occurred in her abscence including the costs of trying to locate her. Should I factor all this in to my offer for the lease extension?

4) If I extend the lease and in the future I buy a share of the freehold, will the amount I pay for the share be less given that my lease will be longer than those of the other leaseholders in the building?

Thanks

Rob

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