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  • FIRST POST
    • MSE Jenny
    • By MSE Jenny 1st Mar 12, 3:18 PM
    • 1,216Posts
    • 3,554Thanks
    MSE Jenny
    Extend Your Lease guide discussion
    • #1
    • 1st Mar 12, 3:18 PM
    Extend Your Lease guide discussion 1st Mar 12 at 3:18 PM



    Hi all, we've written a new Extend Your Lease guide to help you extend at a fair price.

    How did you find the info? If you've done it, how did it go and do you have any other tips you'd add? How much value do you think it added to your property?

    Thanks
    for your help!


    MSE Jenny

    Last edited by MSE Jenny; 02-03-2012 at 12:59 PM.
Page 26
    • eddddy
    • By eddddy 31st Aug 16, 6:08 PM
    • 3,850 Posts
    • 3,484 Thanks
    eddddy
    Hello, I'm just about to start the process to extend my lease, and working with a mortgage adviser to borrow some more money on my mortgage to do so - is it better to contact the freeholder to ask for an estimate for the extension or to get a lawyer/surveyor to start the negotiations on my behalf? Grateful for any advice!
    Originally posted by AJLarter
    There's no harm in asking the freeholder for a quote.

    But check the terms carefully - don't just look at the price. Quite a few people seem to get tricked into getting 'bad' lease extensions, because they seem cheap.

    A statutory lease extension would add 90 years to the term, and take the ground rent down to zero (a peppercorn). Those would be good terms to aim for.
    • AJLarter
    • By AJLarter 1st Sep 16, 12:25 PM
    • 2 Posts
    • 0 Thanks
    AJLarter
    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
    • By Ollie345 18th Sep 16, 9:53 AM
    • 19 Posts
    • 3 Thanks
    Ollie345
    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
    • By SKPatel 19th Sep 16, 1:38 PM
    • 63 Posts
    • 24 Thanks
    SKPatel
    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
    • By starving artist 19th Sep 16, 9:25 PM
    • 594 Posts
    • 5,478 Thanks
    starving artist
    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!
    Originally posted by AJLarter
    The leaseholder has to pay the freeholders legal costs.
    Originally posted by Ollie345
    ...HOWEVER, if it goes to Tribunal for determination of the price of the extension, each party is responsible for their own costs.
    Last edited by starving artist; 19-09-2016 at 9:39 PM. Reason: clarification
    • Fedupoflease
    • By Fedupoflease 10th Oct 16, 12:24 PM
    • 9 Posts
    • 0 Thanks
    Fedupoflease
    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
    • By normal 14th Oct 16, 2:34 PM
    • 432 Posts
    • 104 Thanks
    normal
    Sloane Stanley Estate v Mundy & Lagesse and Aaron v Wellcome Trust Ltd 2016
    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
    • Elestano9
    • By Elestano9 20th Oct 16, 6:53 AM
    • 1 Posts
    • 0 Thanks
    Elestano9
    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
    • By Techytom 26th Oct 16, 10:30 PM
    • 1 Posts
    • 0 Thanks
    Techytom
    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
    • By eddddy 26th Oct 16, 11:36 PM
    • 3,850 Posts
    • 3,484 Thanks
    eddddy
    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!
    Originally posted by Techytom
    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
    • By Tiggy3000 29th Oct 16, 4:39 PM
    • 1 Posts
    • 0 Thanks
    Tiggy3000
    When to extend a lease?
    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?
    Last edited by Tiggy3000; 29-10-2016 at 4:42 PM.
    • Katz22
    • By Katz22 2nd Nov 16, 6:20 PM
    • 3 Posts
    • 0 Thanks
    Katz22
    When to negotiate Lease Extension quote?
    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.
    • want2bmortgage3
    • By want2bmortgage3 8th Nov 16, 11:37 AM
    • 1,944 Posts
    • 416 Thanks
    want2bmortgage3
    Hi I'm looking to get my lease extended and wondered if there's any advice on how to choose a valuer and solicitor?
    I've looked at the lease advice directory and the alep directory but the guide says consider ones further afield if you live in an expensive area. Any tips welcome.
    • liam1989
    • By liam1989 9th Nov 16, 2:36 PM
    • 42 Posts
    • 11 Thanks
    liam1989
    Hello all,

    Been a while since I have posted on here. I have just received the following email from my solicitor and just require some advice if possible.

    I am , of course, aware that you decided not to purchase the freehold with the other Tenant earlier this year my concern is that the freehold could be purchased by a specialist company with the aim of charging management fees that can, in some cases, be quite excessive. To my mind it would be preferable for you and the other Tenant to acquire the freehold so that you have control of the expenses for repairs maintenance and insurance of the building.

    Im very confused. Like I said in a post I posted a few years back, I extended my lease to 170 years. I live a converted flat (I live upstairs with my neighbour living on the ground floor). If someone does purchase the freehold at auction can they really start imposing new terms on the lease and start charging fees etc. Currently we have a good system in place whereby any works that need to be done on the property are split 50/50 between myself and my neighbour and we are also responsible for our seperate insurances. I have lived in the property for 5 years now and have had no contact with the current freeholder - and to be honest I've had no need to either.

    Your help is greatly appreciated.

    Cheers
    • eddddy
    • By eddddy 9th Nov 16, 3:44 PM
    • 3,850 Posts
    • 3,484 Thanks
    eddddy
    Like I said in a post I posted a few years back, I extended my lease to 170 years. I live a converted flat (I live upstairs with my neighbour living on the ground floor). If someone does purchase the freehold at auction can they really start imposing new terms on the lease and start charging fees etc.
    Originally posted by liam1989
    No - they cannot impose new terms on the lease, but they can do anything that the lease currently allows.

    For example...

    The lease might allow employing a management company - and you and the other leaseholder will have to pay their fee.


    Currently we have a good system in place whereby any works that need to be done on the property are split 50/50 between myself and my neighbour
    Originally posted by liam1989
    A new freeholder might not allow that arrangement to continue.

    The freeholder may decide what needs doing and when and which contractors to choose, and then split the costs 50/50 between you.

    The freeholder might choose more expensive contractors than you would, and do maintenance (e.g. cleaning communal areas) more often than you would.


    ...and we are also responsible for our seperate insurances.
    Originally posted by liam1989
    Does the lease say that you are each responsible for your own insurance? Or does the lease say the freeholder should be responsible for block insurance?

    A new freeholder is likely to enforce whatever it says in the lease.



    But one other consideration - it sounds like your neighbour is rational, reasonable and sensible - so managing the building between you is fine.

    If you become joint freeholders, and your neighbour sells to a difficult person, you might find being a joint freeholder much more challenging.
    • bb69
    • By bb69 10th Nov 16, 5:58 PM
    • 1,727 Posts
    • 4,424 Thanks
    bb69
    Lease extension - Is this salvageable
    Hi all

    Ok - Agreed terms with landlord to extend lease by 90 years with a small increase to ground rent by £25 a year, making it £175

    Now I thought he would add 90 years to my remaining lease which is 80 years

    BUT just been to solicitor who has shown me draft documents showing the 90 years has been added onto the original term of lease which started in 1997! (99 years from 1997) I moved in in 2004

    The landlords letter says "add 90 onto your old lease", but in all our conversations its been adding on top of 80 years

    I spoke to him today and he again said - "add on top of existing amount on lease", and then said he would need to check paperwork....

    I am paying £9000 so as you can imagine don't want it to be starting from 1997 which means I lose out on nearly 20 years

    Is there anything I can do? Slightly concerned he may come back and say it should be added to 1997 lease
    Thanks for all advice
    • dbrooks2016
    • By dbrooks2016 12th Nov 16, 12:27 PM
    • 1 Posts
    • 0 Thanks
    dbrooks2016
    We recently bought a flat after being told that it had 111 years left on the lease. But when we received the solicitor's report she stated that the lease only had 99 years left. When we checked the lease the wording was not clear so we asked her to clarify. The solicitor responded by amending her the Report to say 111 years, implying that she had made a mistake.

    It was only months later, after we got the deeds, that we were able to confirm that the correct figure was in fact 99 years as stated in the solicitor's original report.

    We are now wondering what is the best course of action. In our view the property was mis-sold and the solicitor let us down. Length of lease must affect the price and saleability of a property and the shorter than expected lease means that we will need to extend it 12 years earlier than we would have done otherwise. However if we were to apply for compensation on what basis would we quantify the amount claimed?

    I've spoken to the the Lease Advice Service but apart from referring to the Finance Ombudsman they weren't that helpful.

    Any ideas/knowledge about this would be appreciated.
    Last edited by dbrooks2016; 12-11-2016 at 12:28 PM. Reason: typo
    • Dallybally
    • By Dallybally 13th Nov 16, 9:41 AM
    • 36 Posts
    • 3 Thanks
    Dallybally
    Hi. Have you asked your solicitor? There must be precedence for this.

    If you think about the bigger picture, although not in your favour, the lease being 150 vs 170 years won't affect you or resale value, do you envisage living there 60+ years?
    • bb69
    • By bb69 13th Nov 16, 9:26 PM
    • 1,727 Posts
    • 4,424 Thanks
    bb69
    Hi. Have you asked your solicitor? There must be precedence for this.

    If you think about the bigger picture, although not in your favour, the lease being 150 vs 170 years won't affect you or resale value, do you envisage living there 60+ years?
    Originally posted by Dallybally
    Hi thanks she doesn't have a scooby doo

    I think its the principle really £9k for 70 years or 90 years

    We agreed 90 years cannot understand how I can pay for a lease when I wasn't even living there

    I may not live here but if property stays in family it matters

    I'm going to contact the leasehold association tomorrow morning and see. Have texted the landlord so will wait for him to get back to me
    • bb69
    • By bb69 13th Nov 16, 9:39 PM
    • 1,727 Posts
    • 4,424 Thanks
    bb69
    Hi thanks she doesn't have a scooby doo

    I think its the principle really £9k for 70 years or 90 years

    We agreed 90 years cannot understand how I can pay for a lease when I wasn't even living there

    I may not live here but if property stays in family it matters

    I'm going to contact the leasehold association tomorrow morning and see. Have texted the landlord so will wait for him to get back to me
    Originally posted by bb69
    Plus when you agree 90 years the ground rent should be nil
    I didn't argue this point at all and actually it was increased by £25 so i'm not being diddled out of 20 years
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