Extend Your Lease guide discussion

want2bmortgage3

Hi Liam
Do you pay ground rent?
Your freeholder should send you a statement every year for the ground rent, and this should contain all their contact details, including a phone number?

tim123456789

The ultimate unwilling seller.

The longer that a FH can dely the process the more expensive that an extension becomes (or the greater the chance of exipiry and reversion back to him). So not replying, gains him money.

You have no choice but to go the statutory route with such a person

liam1989

want2bmortgage3 wrote: »

Hi Liam
Do you pay ground rent?
Your freeholder should send you a statement every year for the ground rent, and this should contain all their contact details, including a phone number?

hi want2bmortgage3,

no i do not pay any ground rent.

ive read that i can pay a small fee to track the free holder down.

IanIan

tim123456789 wrote: »

with willing parties they can do it in 6 hours.

All it is is a new lease written and a couple of forms filled in and signed.

The reason that it takes months is because one of the parties is unwilling to agree terms and the other party is just waiting until they do.

Not necessarily - often a new plan is needed for the new lease and this takes time. In fact, all new leases should have new plans. Also, the new lease may have new clauses that are not in the old lease, and these need to be negotiated and agreed upon between the parties. It is important that the new lease being granted is a good, mortgageable lease. Some folk have rushed into their new leases and lived to regret it later, when they discover that the new lease is unmortgageable. They then have to ask the freeholder to change the lease, and this costs yet more money and takes time.

ovy_2

I have a couple of questions regarding the freehold..

The property owned is a flat in a block with 8 other flats.

The property is worth £90-£100k although last flat sold for £79k

After contacting the leaseholder/management about other issues they've asked if we are interested in buying the freehold, we've not been given a prices etc as they're slow.

My questions are, what would the cost be for the freehold?

the property has approx 95 years left, ground rent is about £10 a year.

I've tried a calculator and it is saying the cost is approx £1160, will this be per flat or for the whole freehold? or would it be £10440 for all 9 flats

If the other owners didn't want to participate making it under this 50% threshold, are we able to still purchase the whole freehold?

tim123456789

it would be 1-2,000 per flat,

If you are offered it, any number of you can participate in that offer

System

Hello all,

Just wondered if anyone here could help me with this question (still waiting to hear back from LEASE about it)....I'm in the process of extending my lease but we've reached an impasse as the freeholder refuses to budge from their price which is about £5k higher than my surveyor is saying. Anyway, I'd be interested in seeing how these calculations were reached on both sides but both parties are refusing to tell me. Is it my legal right to see their workings, does anyone know?

Many thanks!

Red.

propertyman

If your landlord is unwilling to agree terms then your only option is the statutory procedure, which if it has to go to the LVT for determination, then you can see their (FH) valuation.

Bear in mind you are are responsible for all the landlords costs , and yours so is doing so going to cost you less than £5000? Even if you get "your figure" at the LVT, its then your figure plus all the additional costs.

If so then it is worth thinking about splitting the difference in negotiations.

starving_artist

propertyman wrote: »

If your landlord is unwilling to agree terms then your only option is the statutory procedure, which if it has to go to the LVT for determination, then you can see their (FH) valuation.

Bear in mind you are are responsible for all the landlords costs , and yours so is doing so going to cost you less than £5000? Even if you get "your figure" at the LVT, its then your figure plus all the additional costs.

If so then it is worth thinking about splitting the difference in negotiations.

You are NOT responsible for all the landlords costs, only his 'reasonable costs' as per Leasehold Advisory Service's explanation: This is limited to legal and valuation costs e.g. the landlord's valuation, legal costs of drawing up the new lease and checking your right to make the claim for a lease extension. You do not have to pay the landlords costs of going to a Leasehold Valuation Tribunal.

propertyman

starving_artist wrote: »

You are NOT responsible for all the landlords costs, only his 'reasonable costs' as per Leasehold Advisory Service's explanation: This is limited to legal and valuation costs e.g. the landlord's valuation, legal costs of drawing up the new lease and checking your right to make the claim for a lease extension. You do not have to pay the landlords costs of going to a Leasehold Valuation Tribunal.

You make a pedantic distinction for your own satisfaction;:eek:
have another easter egg...

The costs that are recoverable and are reasonable are all the landlord's costs.....a landlord that seeks costs that they cannot reclaim is another issue and abuse.

The vast majority if cases result in reasonable costs being levied and not being challenged or having to be determined. A cost of £2 to £4k is commonly seen and factors into the decision of whether to negotiate.