Leasehold Extension with no Ground Rent payable

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    #1

    Leasehold Extension with no Ground Rent payable

    Hello All,

    I have recently started reading this forum; what a great resource for people like me just getting started, so thank you in advance.

    Hopefully someone can offer me some advice, I am about to purchase my first BTL, 2 bed leasehold flat, value £60,000, 87 years remaining so will be looking to extend the lease with about 85 years remaining (current occupier can't start the process unfortunately). There is zero ground rent payable on this property and every other one in the block, I believe due to the freeholders actually owning the land and managing the properties, Midland Heart is the company.

    I have put the figures in the calculator and the premium is coming out at between £1000-£1400, plus costs, this seems fairly reasonable but I haven't come across the scenario with no ground rent payable so hopefully someone will have more knowledge.

    Thank You.
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    #2
    Ground rent is not always demanded with leaseholds.

    I notice that MH specialise in retirement properties - is this one?



    Freedom at the point of zero............

    Comment

      #3
      Thanks Interlaken,

      I don't believe this particular property or block are retirement properties, I have viewed a couple and seen some occupiers and they are generally young.

      The flats were originally for sale under a Midland Heart shared ownership scheme, some are still shared and some are 100% owned, as is the one I am in dealings with.

      That is reassuring that is not unusual regarding zero ground rent, do the figures I suggested seem about right?

      Comment

        #4
        If you use the method for calculation of approx valuation cost for lease extension posted in FZforum thread No. 11080 , then at 85 years unexpired and payingNil ground rent, you would calculate the approx cost at 60,000 divide by 63 = £ 950

        Comment

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