Lease extension on flat in london zone 2

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    Lease extension on flat in london zone 2

    Hi

    I am new to the forum so firstly thanks in advance for any advice that anyone gives. I have a 2 bed flat in zone 2 london (Clapham) and the lease is currently at 80yrs and 2 days. I have served a s42 notice to the freeholder to extend the lease by 90 years and so far I have agreed to pay for their surveyor to calculate the lease premium being valued at £15,100. By using the sglacy calculator on this website I get £13,100.

    So my question is how do I negotiate with the freeholder to come to an agreed lease premium value without incurring professional fees that will exceed £15,100?

    Thanks

    Martin

    #2
    The two most common variances are
    1 The value of the flat
    2 The failure to value the ground rents which vary over the remaining term

    How have you and the landlords surveyor addressed these? How much evidence do you have to back up 1 and are the depreciation rates, the X %, used the same. If I recall sgclacy uses the rare set in earlier cases however there are arguments that these vary in certain areas such as very high or very low value areas.
    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


      #3
      You could spend a lot of time and maybe surveyor's fees trying to get £15100 down to £13100.
      I suspect £2000 is a very small percentage of the value of the flat in Clapham so it may be better to accept what is suggested assuming the freeholder is happy with that valuation.

      Comment


        #4
        Maybe a deal could be done whereby you pay a premium of £13,100 but instead of a ground rent of a peppercorn you agree to say a rent of £150per annum.

        Unless you intend owning the flat for many years this may be better. Whether the flat has a ground rent of a peppercorn or £150 will make no difference to the value of the flat

        Comment


          #5
          Chubbm,

          The only way you can negotiate is to have your own survey done so your surveyor can negiotiate with their surveyor on your behalf. A value that you have obtained on the internet is not a tool for negotiating.

          Comment

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