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Extend Your Lease guide discussion

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  • SKPatel
    SKPatel Posts: 63 Forumite
    af2909 wrote: »
    In the case of an absentee landlord, do you have to take the full 90 year extension or can you have a shorter lease (i.e. from 65 years to 99 years) at a lower premium?
    Where you have a missing freeholder, you will need to make a court application for a lease extension. The application is usually made under specific legislation which extends your lease for the 90 years you mention.
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
  • LallyPops
    LallyPops Posts: 62 Forumite
    SKPatel wrote: »
    Freeholders and surveyors fees vary depending on their location and size. You could expect legal fees of between £800 -£1200 plus VAT and sometimes fees up to £2500 plus VAT where you have served a formal notice to extend lease. Some freeholders may reduce their fees slightly where they are dealing with several flats in one matter.

    Equally, the valuation fees you have been quoted are not altogether unreasonable but given that the freeholder is likely to inspect all three flats in one visit, i find it difficult to understand how he will incur £1800 in time.

    Hi Sajel,

    Thanks for getting back to me, much appreciated! When you state 'served a formal notice' does this mean having a solicitor represent you in negotiations?
  • cutandshut
    cutandshut Posts: 110 Forumite
    Hi
    You seem a knowledgeable lot here and I wonder if you can help me.
    I’m looking for a bit of advice about the procedure for collective enfranchisement and lease extensions.
    I own the freehold of a converted Victorian house (3 flats) in South London. I also own the leasehold of one flat.
    The other 2 flat owners and myself have agreed to enfranchise the freehold and, at the same time, extend all 3 leases which, at the moment, have around 68 years remaining.
    We have had a valuation done and have agreed a premium for each flat.
    It’s what to do next that I am uncertain about. Is it best to proceed using one solicitor or should we each have our own? I understand that the owners extending their leases are responsible for all the legal costs but in this case I am also a lease holder.
    I would be grateful if anyone could advise on the best, and cheapest, way to proceed.
    Many thanks in anticipation.
  • plainlazy
    plainlazy Posts: 12 Forumite
    SKPatel wrote: »
    When you're trying to negotiate informally with the freeholder, it is not unusual for them to request a fee upfront for a valuation. I have known this to be anywhere between £100-£250. If after a valuation has been carried out you cannot agree terms then as you mention, you may have to wait until you do qualify for a statutory lease extension - it is unlikely you will recover the £100 either.

    Unfortunately, your freeholder may well know that you do not qualify for a statutory lease extension and there is a chance that they could use this to their advantage. You may wish to take advice from a surveyor as to whether the freeholder's valuation and proposal is reasonable.

    Thanks for your reply.

    From the few things I've heard about my freeholder I don't hold out much hope getting a 'reasonable' first offer especially given my circumstances. Still thought it was worth an informal approach though even if only to get confirmation of this. If it costs £100 for that confirmation then I'd rather wait closer until the golden two years before progressing any further. At least I'm doing some research on the matter in advance if nothing else.
  • propertyman
    propertyman Posts: 2,922 Forumite
    cutandshut wrote: »
    Hi
    You seem a knowledgeable lot here and I wonder if you can help me.

    Please see reply in your other thread which started with this question.
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";
    if you can show me one I will produce my daughter's unicorn
  • SKPatel
    SKPatel Posts: 63 Forumite
    LallyPops wrote: »
    Hi Sajel,

    Thanks for getting back to me, much appreciated! When you state 'served a formal notice' does this mean having a solicitor represent you in negotiations?
    You will need to instruct a solicitor to serve a formal notice but it will usually be your surveyor who negotiates the premium on your behalf either with the freeholder or the freeholder's surveyor.
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
  • You could well have a case - but you need to read the reports that they sent you.

    They could have covered themselves with some vague comments like:
    "The length of the term of tears remaining on lease may have an effect on its value in the future. You should consult a surveyor about this."
    Quite possibly enough for them to protect their backs.

    The explanation should have been something like:
    "This lease has only 66 years left to run. Even now not all lenders would accept it but by the time it gets down to 60 yaers it will be virtually unmortgageable. Even if a buyer could get a mortgage he will be advised that he may have to pay out a substantial sum (4 or possibly 5 figures) to extend the lease in order for him to sell it and this will affect your ability to sell it in the future. You need to take this into account if you decide to proceed with this purchase."
    Hi - I am in the same situation, where I was a first time buyer and bought my flat which had 78 years left. However the solicitor did not advise me that it will be a problem if the remaining lease is under 80 years or I should reduce the purchase price.
    My question is how can I make a claim against them or what can I do if I they did not advise me? thanks
  • richardw
    richardw Posts: 19,459 Forumite
    Part of the Furniture 10,000 Posts
    timo1901 wrote: »
    Hi - I am in the same situation, where I was a first time buyer and bought my flat which had 78 years left. However the solicitor ...

    Were they a conveyancer or a solicitor?
    Posts are not advice and must not be relied upon.
  • You could well have a case - but you need to read the reports that they sent you.

    They could have covered themselves with some vague comments like:
    "The length of the term of tears remaining on lease may have an effect on its value in the future. You should consult a surveyor about this."
    Quite possibly enough for them to protect their backs.

    The explanation should have been something like:
    "This lease has only 66 years left to run. Even now not all lenders would accept it but by the time it gets down to 60 yaers it will be virtually unmortgageable. Even if a buyer could get a mortgage he will be advised that he may have to pay out a substantial sum (4 or possibly 5 figures) to extend the lease in order for him to sell it and this will affect your ability to sell it in the future. You need to take this into account if you decide to proceed with this purchase."
    Hi - I am in the same situation, where I was a first time buyer and bought my flat which had 78 years left. However the solicitor did not advise me that it will be a problem if the remaining lease is under 80 years or I should reduce the purchase price.
    My question is how can I make a claim against them or what can I do if I they did not advise me? thanks
  • richardw
    richardw Posts: 19,459 Forumite
    Part of the Furniture 10,000 Posts
    With the Counter Notice http://www.lease-advice.org/publications/documents/document.asp?item=8#11

    can the professionals get together to thrash out agreement before the counter notice is issued and then the details in the counter notice are the agreed details?

    Is this the best way for agreement to be arrived at?
    Posts are not advice and must not be relied upon.
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