Leasehold question

CB1979_2

hi guys, me again!

basically i want to extend my lease on my new house and the freeholder has stated £13.5k from 67 years to 157 years and then reduces any of my charges to £0 per annum down from £100.

the previous owners had a survey carried out under Leasehold Act 2002 and the company said it should be valued @ £8,200.

so is this the legally binding figure?
can i get it extended for less than this or
do i have to pay whatever the freeholder demands or
do i pay £8,200 and the freeholder has no choice but to accept.

obviously don't want to annoy my new "landlord" but also don't want to get ripped off.

any help much appreciated.

cattie

If you have owned the property for less than 2 years then the freeholder is under no obligation to extend your lease. On the same basis, the price offered to the previous owners who obviously had the right to a lease extension is not applicable in your case, should the freeholder be willing to grant you an extension.

I don't know in which area you live, but the price quoted for such a good length extension sounds terribly reasonable by London standards. Often a lease extension will be for 99yrs, so one of 157yrs is very, very attractive.

CB1979_2

Based in South Croydon.

cheers for the info, so the Leasehold act only comes into play once you've lived somewhere for 2 years?

so basically once i've been there 2 years I can pay whatever the valuers say, regardless of what the freeholder wants?

cattie

Yes to question 1,

Question 2 not quite so clear cut. When the lease is below 80yrs things are not as straightforward & the value of extending increases.

For more information on leasehold property go here.http://www.lease-advice.org/newintro.htm

It's a free government funded organisation who can give you advice.

Based on your location I'd say that you'd see a good return on the selling price with a lease extension of 157yrs.