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  • FIRST POST
    • MSE Jenny
    • By MSE Jenny 1st Mar 12, 3:18 PM
    • 1,218Posts
    • 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 27
    • bb69
    • By bb69 19th Nov 16, 9:08 AM
    • 1,728 Posts
    • 4,424 Thanks
    bb69
    Err, that's the same!

    1997: 99 years plus the new 90 = 189 years total
    2016: 80 years plus the new 90 = 170 years total, plus the 19 years already 'used' since 1997.

    At the end of the day, the lease will be updated to be 189 years from 1997.

    You haven't lost out...you're getting 90 extra years added on whichever way you look at it.
    Originally posted by techno12
    Ah I see what you mean but the solicitor worked it out to be 151 years remaining i'll need to check again
    • jamels2
    • By jamels2 26th Nov 16, 1:55 PM
    • 268 Posts
    • 43 Thanks
    jamels2
    hi all! I have had conflicting views on whether i should extend my lease.
    the guide says if its under 80 to extend asap, but not take out extra borrowing to do so.
    another person has said you can always extend at the point of sale, at the buyers cost, so wait til if you sell.
    can anyone advise which is the best advice???
    • eddddy
    • By eddddy 27th Nov 16, 9:53 AM
    • 4,955 Posts
    • 4,609 Thanks
    eddddy
    another person has said you can always extend at the point of sale, at the buyers cost, so wait til if you sell.
    Originally posted by jamels2
    That would be an informal arrangement. I would absolutely not rely on that. You would be at the mercy of your freeholder.

    Your freeholder could ask any price they want and any terms they want - or just flatly refuse to extend.

    If the freeholder knows you need a lease extension in order to sell - they massively have the upper hand in negotiation.



    Perhaps a better approach is to start the statutory lease extension process 6 to 12 months before you intend to sell. That way, if you need to borrow money to do it, it would only be for a few months.
    • jamels2
    • By jamels2 27th Nov 16, 10:16 AM
    • 268 Posts
    • 43 Thanks
    jamels2
    good point eddy i think you can also assign the s42 notice to a new buyer so they get statutory terns?
    • eddddy
    • By eddddy 27th Nov 16, 10:34 AM
    • 4,955 Posts
    • 4,609 Thanks
    eddddy
    good point eddy i think you can also assign the s42 notice to a new buyer so they get statutory terns?
    Originally posted by jamels2
    Yes - if that's acceptable to the buyer, and there are enough years on the left on the lease to get a mortgage without the extension.

    But some buyers will be deterred, and most would expect to get a bargain, because of the extra the hassle, the risk and the uncertainty about what the extension will cost.
    • briddj
    • By briddj 27th Nov 16, 10:42 AM
    • 35 Posts
    • 2 Thanks
    briddj
    I'm currently going through the process of extending my lease.

    The leaseholder has demanded a figure vastly higher than the valuation (no surprise there) so we have to enter negotiations.

    The valuer is quoting either £200/hour or a flat fee of £1,500 no matter how long it takes. Am I better taking the flat fee or is the cost unlikely to get that high?

    Thanks.
    • katyteague
    • By katyteague 4th Dec 16, 12:33 PM
    • 1 Posts
    • 0 Thanks
    katyteague
    I need some advice, we're looking to buy a flat through shared ownership. The lease is 77 years and I'm not sure how lease extension works on a shared ownership property. Would we pay for the whole extension or just for the % we own? I'm trying to weigh up the costs as this is going to be our first property.
    • eddddy
    • By eddddy 4th Dec 16, 8:49 PM
    • 4,955 Posts
    • 4,609 Thanks
    eddddy
    I need some advice, we're looking to buy a flat through shared ownership. The lease is 77 years and I'm not sure how lease extension works on a shared ownership property. Would we pay for the whole extension or just for the % we own? I'm trying to weigh up the costs as this is going to be our first property.
    Originally posted by katyteague
    You have no statutory right to extend the lease on a shared ownership property. So there are no laws that specify the price/terms for an extension.

    See: http://www.lease-advice.org/faq/i-have-a-shared-ownership-lease-do-i-have-a-right-to-extend-my-lease/

    So you (or the vendor) could start by asking the freeholder for the price/terms they would offer for a lease extension.


    If I were you, before buying, I would get a contractual agreement that states that the lease will be extended.
    • hutman
    • By hutman 6th Dec 16, 1:53 PM
    • 68 Posts
    • 26 Thanks
    hutman
    Hi,

    I've put an offer in on a property with 87 years lease and ground rent £120 p.a.

    The vendor cannot renew the lease because he hasnt stayed there for two years but has assured me I wont be paying astronomical figures if I want to renew it: £6-8k.

    Is this reasonable? Any costs I have to further provision for in my offer?
    • eddddy
    • By eddddy 6th Dec 16, 4:05 PM
    • 4,955 Posts
    • 4,609 Thanks
    eddddy
    Hi,

    I've put an offer in on a property with 87 years lease and ground rent £120 p.a.

    The vendor cannot renew the lease because he hasnt stayed there for two years but has assured me I wont be paying astronomical figures if I want to renew it: £6-8k.

    Is this reasonable? Any costs I have to further provision for in my offer?
    Originally posted by hutman
    I wouldn't take the vendor's word for how much you would pay.

    But there are a few lease extension calculators around the internet, including http://www.lease-advice.org/calculator/

    Maybe budget for up to £4k in fees, if you go for a statutory lease extension.
    • bb69
    • By bb69 16th Dec 16, 11:34 PM
    • 1,728 Posts
    • 4,424 Thanks
    bb69
    Hi can anyone advise on this?

    Lease extension agreed with landlord - 90 years on top of current lease of 80 years, small increase of ground rent from 150 to 175 per year

    Basically all terms of the lease remain the same apart from this

    Current lease says:

    Within one calendar month after such document or instrument as in hereinafter mentioned shall be executed or shall operate or take effect or purport to operate or take effect to produce to the lessors solicitors a certified copy of every transfer mortgage or legal charge (including any statutory notice receipt or release of any charge or notice or deposit with a bank) of this lease or the flat or any part thereof and also every underlease of the flat for more than twelve months and every assignment of such underlease and also every probate letters of administration order of court or other instrument effecting or evidencing a devolution of title as regards the term hereby granted or any such underlease as aforesaid for the purpose of registration and for such registration to pay to such solicitors a reasonable documentation fee in respect of each such document or instrument so produced not being less than twenty pounds (together with value added tax a prevailing rate)

    NEW document has a clause which says:

    The tenant will within one calendar month next after any absolute transfer assignment charge of devolution of his interest under this present lease in the premises or any part thereof give notice in writing of such transfer assignment charge or devolution and pay to him such reasonable fee. The clause shall replace [x] of the original lease

    A few questions please:

    - Is this ok to sign?
    - I am concerned about the reasonable fee element - what does that mean?
    - My solicitor says the fee would also need to be paid by the incoming buyer - but where does it say this?

    Please any advice appreciated.
    • bowler201082
    • By bowler201082 10th Jan 17, 8:34 PM
    • 2 Posts
    • 0 Thanks
    bowler201082
    Help, lease extension template
    Hi all,

    My first post here so please be gentle!

    I am wanting to begin the process of extending my 79 year lease, if I'm honest it frightens the life out of me as it's unknown territory. Does anyone have any template letters especially the first one to write to my landlord informing that I wish to extend my lease voluntary?

    Your help really is greatly appreciated!!!
    • CClark
    • By CClark 14th Jan 17, 5:22 PM
    • 1 Posts
    • 0 Thanks
    CClark
    Extend a Housing association Lease
    Hi,
    I currently own a 50/50 share of a home ownership flat and the lease is now down to 71 years. The housing association will not allow me to extend the lease as l do not own the flat out right but as l do not earn enough to apply for a full mortgage for the other half of the flat l am stuck. Has anyone else been in this situation or can advise me on legally challenging this?
    • hencloud
    • By hencloud 26th Jan 17, 8:51 AM
    • 3 Posts
    • 1 Thanks
    hencloud
    Hi

    You can approach your freeholder but it really depends on who it is. If you are friendly with them then you might be able to negotiate something informally. Let me know the Freeholder.

    Simon Brook
    South East Leasehold
    Solicitors & Chartered Surveyors
    • hencloud
    • By hencloud 26th Jan 17, 8:55 AM
    • 3 Posts
    • 1 Thanks
    hencloud
    I'm currently going through the process of extending my lease.

    The leaseholder has demanded a figure vastly higher than the valuation (no surprise there) so we have to enter negotiations.

    The valuer is quoting either £200/hour or a flat fee of £1,500 no matter how long it takes. Am I better taking the flat fee or is the cost unlikely to get that high?

    Thanks.
    Originally posted by briddj
    Where is the flat?

    I would not pay an hourly rate.

    £1,500 is high for a valuation unless its in the middle of London.
    • unij1
    • By unij1 3rd Feb 17, 5:03 AM
    • 1 Posts
    • 0 Thanks
    unij1
    Hi All,

    I am just starting the process and it is very hard to tell the difference between a good Solicitor and surveyor and a bad one. Does anyone care to offer a recommendation for who to hold hands with in this process? Preferably someone who is quick to reply and you didn't have any problems with!
    Thanks in advance!

    J
    • jamels2
    • By jamels2 1st Mar 17, 8:56 AM
    • 268 Posts
    • 43 Thanks
    jamels2
    J
    I have the same question how to find a good solicitor who doesnt take days to reply to an email?
    Thanks
    • Squirrel60
    • By Squirrel60 4th Mar 17, 4:06 PM
    • 4 Posts
    • 0 Thanks
    Squirrel60
    Short leasehold House with outstanding mortgage, help?
    Hello,

    I'm trying to help some friends (haha no it's not me!) with what I consider to be quite a dire situation, and I'd appreciate it if someone could skim it and see if how I view it is correct or if there are any silver linings.

    They are a married couple about to retire on state pension with a little bit of extra private pension. They have ~£80k left on a now interest only mortgage with only 8 years remaining, I have seen that some lenders are now allowing mortgages to be repaid in retirement to 85 or beyond so I had suggested they remortgage to stretch it out (with help from family to repay in ~18 years instead of 8) and allow them to stay in their home.

    The thorn I have just discovered is their house (yes a semi-detached house not a flat) is actually leasehold, and with less than 60 years left on the lease (believe they had it from new with a 99 year lease), digging round the net it would seem to be about £28k to extend the lease - whether it's different for houses to flats I don't know, as leasehold houses seem much less common.

    Putting aside that what a mortgage lender would actually be prepared to lend them is probably a lot less than what they need, could they in principle add the cost of a lease extension (or freehold purchase) to their remortgage? This would mean they would need to borrow £80k + £28k = £108k for 18 years on a little over 2 state pensions - which I doubt would happen, but that's something else.

    They recently had the house valued at just over £200k, for the purpose of getting an idea of current LTV% for remortgages (so it's at less than 40%) - but I believe that probably did not take into account the reduced lease although estate agent mentioned it *might* cause an issue for mortgages (assuming it being sold now, not further down the line when it's even less and even more of a problem). Is it a rule of thumb that the years left on a lease give you a % value of the property i.e. 58 years means it's actually work 58% of £200k? Seems low if "only" £28 to extend lease.

    So there are 2 ticking time bombs as I see it:

    1) The mortgage term ending in 8 years with £80k debt left - which might have been resolved with a "mortgage in retirement" plan...but....the impact of it being leasehold.

    2) The lease already down to 58 years - thus this makes remortgaging, or selling it a problem if they want to downsize now to clear the mortgage (but when you consider they will have £200k sale - £80k oustanding mortgage - £28k lease extension to make it "sellable" it leaves them with £92k which doesn't get much these days - I suppose they could get a smaller mortgage on top.

    What happens if the mortgage expires and it's not repaid, yet the house has only 50 years lease? Would the mortgage company also reclaim the cost of lease extension from the proceeds of sale anyway?

    I only just found out about it being leasehold so I'm trying to help them find a way forward, my house is freehold so I didn't really know anything about how this works until now.

    Thanks,

    Ed
    • silkz
    • By silkz 14th Mar 17, 7:46 PM
    • 9 Posts
    • 2 Thanks
    silkz
    Lease and freeholder issues
    My lease is short at 66 yrs. Trying to sell my flat and I thought I had extended it after purchase following and agreement with the previous freeholder as it was an inherited condition by ex-seller who payed it on me as a naive ftb. Now I found out it wasn't for an extension but a transfer of lease? How can i sell my flat with this looming as my buyers mortgage company won't lend on a short term.

    I can't approach the existing freeholders as we're in dispute with them about maintenance issues and they're evil money grabbing snakes who have put a spanner in the works with the property forms for the sale, hiking up their fees to £750 and adding calculated interest etc to stuff and their time for 'meetings'. I'm at a loss at what to do as they've been edging us out slowly for the past 10 years being landlords from hell and never lifting a finger for the money we have paid them monthly. They've never issued us letters regarding the works or followed lease processes so in breach for sure. It's caused no end of stress, with 2 young kids, we just want to get out of here. My husbands saying we should've paid them what we 'owed' 2 yrs ago to avoid this drama.
    • Helen_havers
    • By Helen_havers 25th Mar 17, 10:36 PM
    • 1 Posts
    • 0 Thanks
    Helen_havers
    Marriage Value for Leasehold Extension
    Good Evening,

    I am looking to purchase a flat in a block of 15. It is a Victorian block. Lease needs extending, preferably as part of the purchase in that S42 notice is served on the freeholder. Vendor is NOT keen to engage in this idea. Notwithstanding that I have no idea how to determine the price to offer because of some clauses in the lease. I repeat them here and would welcome some thoughts on how to Price the marriage value:
    "At any time or time after the expiration of the first twenty five years of the said term the Landlord may by written notice to the tenant require that the rent hereby reserved shall be revised as hereinafter mentioned provided that no such notice shall be served within the period of 25 years after service of a previous notice under this sub clause...
    (D) and revised rent shall be a ground rent in the sense that it shall represent one-fifth of the letting value of the whole site of the building and the ground occupied and enjoyed there with for the use for which it is lawfully used at the time the revised rent is fixed and regard being had to the provisions of this lease so far as then applicable and relevant ...
    (E) an agreement between the landlord and the tenant as to the amount of any revised rent shall be in writing and signed by both parties and each party shall if so required procure if possible that a memorandum of such agreement is endorsed on or annexed to the Lease and counterpart "

    Thank you very much.
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