Lease extension

moolondon1

Hope someone can give some advice.

I currently have 82 yrs left on a 99 year lease and need to extend it before it gets to the stage before marriage value is calculated below 80 years. The value of the property is approx £200k and I currently pay £75 per annum ground rent. I'm keen to negotiate the lease by 90 years directly with the freeholder to cut down on costs. He's come back with his first offer which seems ok but obviously he does well out of increasing the rent. I've tried all the various calculators but everyone comes out with a different costs.

£2,250 premium and an increase in ground rent to £250 rising in line with the RPI.

Also if we do agree on the costs i'm guessing I have to instruct a solicitor to get this drawn up?

Thanks

Robert_Sterling_3

What do you mean by "negotiate the lease by 90 Years"?

caramia1812

Hi Moo, I live in a maisonette which is in an old two-house block of 4 maisonettes and 2 ground floor flats. The freeholder sold the freehold from under our noses to a snooty cow who bought one of the maisonettes a few years ago. It was too late for the rest of us to do anything as the sale had gone through. Some of the leasholders badgered her and have had their leases extended back to 99 years from 65 years at a cost of £3k per flat. Unfortunately I cant afford the 3k (see my other posts about debt). It was basically worked out by a valuer i.e came and looked around and decided on how much value would be put on to the property by the extension of the lease. You can apply to have it caluclated for you by the Lease Advisory people but it is a very complicated calculation. Steep rise in ground rent for you though. I pay £20 a year. In the end I suppose it depends on what you intend to do with the property. I can't sell mine now with 65 years on lease as no-one can get a mortgage when lease has 65 or less years. I'd go for it! By the way, our flats are only sitting around the £70k to £80k mark so I reckon you are getting a bargain.

moolondon1

I'm not planning to sell the flat will probably keep it for the rest of my life, that's the sting for me in his offer. Sorry to hear about the snooty cow but could you not pay this off in instalments, something my freeholder is happy to do? Surely the cost of £3K would increase the value of your flat by more than this and on top of that you could sell it.

Robert apologies what I meant to say was that I wanted to negotiate directly with the freeholder the 99 yr lease extension which would take it to 171 yrs. Just to do this part can cost £600 plus in fees. Although paying this cost could save me a fortune in the longer term.

moolondon1

sorry just saw your angry faces and note!