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Extend Your Lease guide discussion

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Comments

  • Ollie345
    Ollie345 Posts: 19 Forumite
    The leaseholder has to pay the freeholders legal costs.

    I am wondering why the majority of leasehold flats I see for sale are offered with 99 or 125 year leases. Are most people agreeing informal deals with landlords?

    Why aren't more people taking statutory terms? Is it because they want a quick sale and just want the extra years to get full market value?
  • SKPatel
    SKPatel Posts: 63 Forumite
    Ollie345 you are absolutely correct.

    Most sellers will simply agree terms with their landlord to be able to sell the flat to their buyers. Provided the buyers are happy with the new terms then a deal is done. Its so much quicker than the statutory process and most buyers don't want the hassle of a statutory process.

    It really depends on the parties involved and their circumstances. I have acted for several sellers and buyers who have chosen to follow the statutory process.


    Obtaining the right information and good advice is the key to being able to make the best decision.
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
  • starving_artist
    starving_artist Posts: 863 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    edited 19 September 2016 at 9:39PM
    AJLarter wrote: »
    hello, the guide currently says that a leaseholder is not responsible for paying the freeholder's legal costs, whereas looking at legal advice on a number of solicitor's guides this seems to be incorrect and in fact they do have to pay costs - is it possible to get clarity on this please?
    thanks!
    Ollie345 wrote: »
    The leaseholder has to pay the freeholders legal costs.

    ...HOWEVER, if it goes to Tribunal for determination of the price of the extension, each party is responsible for their own costs.
  • Fedupoflease
    Fedupoflease Posts: 9 Forumite
    Has anyone experience of extending a lease where a head lease is involved?

    If I am correct, the HL company issues each flat a lease. The freeholder issues the HL shortly before this.

    So to extend a flats lease beyond the head lease term, the flat owner must issue the s42 notice to the freeholder, not the HL company?

    Also if I am right the company charging ground rent is the freeholder and who you would issue the s42 to as the competent landlord?
  • normal
    normal Posts: 472 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Has anyone else had an unexpectedly high price given to them recently, due to a case called 'Sloane Stanley Estate v Mundy & Lagesse and Aaron v Wellcome Trust Ltd 2016'?

    My surveyor originally quoted one price, only for the freeholder's solicitor to respond a couple of months later with a massively higher price.

    My surveyor is now saying the high discrepancy is due to the case in May this year and his estimation of final settlement price is likely to be 25% higher than he originally forecasted :eek:
  • Elestano9
    Elestano9 Posts: 1 Newbie
    Hi, two quick questions on lease extensions.

    If I'm to add the cost of lease extension onto my mortgage, is my lender likely to rerun salary/credit checks?

    Also, can I start the lease extension process prior to owning the property for two year as long as it is finalised after the two years have passed?
  • Techytom
    Techytom Posts: 1 Newbie
    Hello!

    Any opinions on ground rent linked to RPI? I'm doing the sums on up the more expensive statutory lease extension option with an offer from the freeholder to simply vary the lease, which is a lot cheaper but £300 yearly ground rent linked to RPI - does this sound risky in terms of future costs and more importantly effect on selling the property in the future?

    Thanks!
  • eddddy
    eddddy Posts: 16,432 Forumite
    First Anniversary First Post Name Dropper
    Techytom wrote: »
    Hello!

    Any opinions on ground rent linked to RPI? I'm doing the sums on up the more expensive statutory lease extension option with an offer from the freeholder to simply vary the lease, which is a lot cheaper but £300 yearly ground rent linked to RPI - does this sound risky in terms of future costs and more importantly effect on selling the property in the future?

    Thanks!

    Looking at things pragmatically, the freeholder won't be suggesting this because it's a better deal for you - it will be because it's a better deal for them (probably a much better deal for them).

    By far the safest option is to negotiate a price for a 90 year extension at zero ground rent - i.e. the terms you would get with a statutory extension.

    And if you can't reach agreement, I would go down the statutory route.

    ... Or, alternatively, at least pay a valuation surveyor to give you a valuation of the extension that your freeholder is offering you.
  • Tiggy3000
    Tiggy3000 Posts: 1 Newbie
    edited 29 October 2016 at 4:42PM
    I have a 97 year lease left and have owned the flat for just over two years. Recent property values are £450,000. The Freeholder is Hackney council and the ground rent is £9 a year. I have £15,000 in a savings account which is my emergencies fund - but I'm unlikely to get any more savings in the future on a public sector salary with little disposable income, and 23 years left on the mortgage. I have no plans to move house, unless interest rates rise so high that I couldn't afford the mortgage repayments. Should I use my savings to extend my lease now - or wait until the remaining lease years drops lower?
  • Katz22
    Katz22 Posts: 3 Newbie
    I have issued a Lease Extension request to my freeholder based on:
    • The market value of a flat that has just sold in my block
    • The Leasehold Advisory Service calculator
    My freeholder has replied with two quotes. The first is £7,500 more than I submitted. The second is without prejudice for £3,500 more than I submitted, if I meet a deadline to complete.
    The second quote is £1,500 more than the top of my budget (without incurring even more debt). I went back to the freeholder with that amount but they are unwilling to move.
    Would you consider pursuing it for the sake of £1,500? I imagine the best case scenario is the tribunal finds in my favour and I get it for the lower figure quoted on the Leasehold Advisory Service calculator, but with additional solicitor costs (which I pay for both of us), which I think would overall only save a max of £1000. Worst case, I still pay the same amount PLUS the solicitor fees.
    From looking at this thread is it fair to surmise that my freeholder has priced it to tempt me and I should only pursue it if the difference between the amounts is closer to £5,000+, and therefore I’m likely to save money? Side note – no surveys have been done by either party.
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