lease extension

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • toffeeman
    replied
    thanks for the info

    Leave a comment:


  • sgclacy
    replied
    Based on the ground rent being £12 pa annum with 52 years remaining and for teh flat to be worth around £200k with a long lease I would calculate the cost of a lease extentsion to be as follows:-

    Step 1, capitilisation of ground rent at 7.5% . Take the rent and multiply by 15 = £180

    Step 2. Discount the value of the reversion of the property using the deferment rate of 5% (Cadogan V Sportilli) This equates to £32,711

    Step 3. Calculate what the value of the property is with a long lease (you advise £200k) and deduct what the flat would be worth with its current lease in a "no act world". I would suggest a relativity of 75% You would need to trawl through various LVT cases looking for similar types of property in London but I think 75% is good enough for this quick back of an envelope valuation.

    Take the difference between the two figures ie £200k less £150k you get £50k. Then deduct the figures in step 1 & 2 of £0.18k and £32.7K to get £17.2k.

    Take 50% of this figure (the marriage value) to arrive at £8.6k

    The cost of the lease extentsion is the sum of these three steps ie £0.18k +£32.7k and £8.6K = £41.4k

    The landlord is seeking £20k plus a revised ground rent. Go for it !!!!

    Leave a comment:


  • jeffrey
    replied
    1. If V has owned flat for >2yrs., arrange for V to serve statutory extension Notice now - before exchange of contracts - and to assign its benefit to you on completion. That way, you won't need to wait two more years.
    2. Subletting does not affect T's right to 90-yr. extension lease.
    3. The premium (price) forextension will inexorably rise, year by year, as unexpired term ebbs away.
    4. You could request a 99 yr. total term (ie a 47-yr. extension), on a non-statutory basis; but why? Getting a 90-yr. extension (so you'd have 142 yrs.) is surely better value for money.
    5. Costs of LVT vary- at least £1000 but maybe more. At least you can't be made to pay L's costs, no matter who wins.

    Leave a comment:


  • toffeeman
    started a topic lease extension

    lease extension

    I’m buying a ground floor maisonette with front and rear gardens in North London, it has a 52 year lease with £12 pa ground rent agreed price 150k (needs doing up), with a healthy lease the property is worth in the region of 200k (fair / good condition), the freeholder is asking for 20k plus costs to extend the lease to 125 years with 250 pa ground rent.

    if we were to go to a tribunal after 2 years of ownership a friend thinks the lease extension should be in the region of 8 ½ k and the agent thinks 12k.

    Could anyone confirm the figure?

    Also

    We are going to rent the flat out, does this affect our right to renew?

    Can we extend at anytime after 2 years i.e. when we only have 10 or 20 years left on lease (I appreciate that this will increase the cost on a pro rata basis)?

    Can we request a total of 99 years?

    Any idea of the costs we would incur if we were to go to a tribunal?

    Any held greatly appreciated

    Thanks.

Latest Activity

Collapse

  • Unauthorised lease variation
    by Stacker
    Lease requires all leaseholders to pay lessor service charges for insurance so sneaky managing agent tried to get leaseholders to pay broker directly which is an unusual arrangement where its not landlord and tenant and insurance is not paid via service charges to lessor.Could this be classed as an...
    13-07-2020, 23:14 PM
  • Reply to Unauthorised lease variation
    by Macromia
    Unfortunately I still have no idea real understanding of what the problem is, or what it is that you feel that you need to achieve - because you're not explaining this.




    Let's be clear:
    The lease has NOT been varied - so you can forget about that idea.
    ...
    15-07-2020, 06:25 AM
  • Reply to Application to the FTT for determination of breach of covenant?
    by Stacker
    Also if managing agent is refusing to take action report them to their own property redress scheme Ombudsman..
    15-07-2020, 04:07 AM
  • Application to the FTT for determination of breach of covenant?
    by Tw1982
    Hi Guys,

    Wanted to start a separate post with a few legal queries regarding applications to the FTT for a formal determination for a breach of covenant.

    Firstly, is it called the FTT (LVT) or the property chamber? We know its changed names quite a few times, but would like...
    13-07-2020, 18:51 PM
  • Reply to Application to the FTT for determination of breach of covenant?
    by Stacker
    Is the freeholder in a company name? At the FTT a freeholder or its directors and or managing agent would normally bring a claim for determination for breach of lease against a leaseholder. For a leaseholders to bring a claim for breach of covenant you could possibly bring a claim if you are a member...
    15-07-2020, 04:02 AM
  • RTM bank account recommendation
    by docdavis3
    Hi all. I am a director of a new RTM company and am looking to set up a company bank account to recieve service fees and pay for maintenance services etc. I have applied for a Tide account but am getting the sort of push back that feels like they don't want our business (it may be legitimate requirements...
    14-07-2020, 20:34 PM
  • Reply to RTM bank account recommendation
    by Gordon999
    try opening a non-profit service charge account with HSBC .It must be called "RTM Client account".
    14-07-2020, 21:00 PM
  • Reply to Unauthorised lease variation
    by Stacker
    There is a duty of care the insurance broker and managing agent owes this to its client so not undertaking due diligence and doing deals with unregulated managing agents is against the FCA and Company Act 2006..breach of contract negligence and breach of fiduciary duty the managing agent is also the...
    14-07-2020, 20:37 PM
  • Reply to Unauthorised lease variation
    by Stacker
    As we are all aware the lease is a relationship between landlord and tenant. The lease is a contract with obligations and rights on both sides to observe and perform the covenants...so no managing agent or board can go against the lease even if agreed unanimously....to go against the lease is to induce...
    14-07-2020, 20:32 PM
  • Reply to Unauthorised lease variation
    by Macromia
    How does it. breach the lease?
    This is something that you still haven't explained (either here, or when you brought the subject up in an earlier thread)....
    14-07-2020, 19:28 PM
Working...
X