Extend Your Lease guide discussion

tim123456789

Also sorry to hear about your illness.

But I think that you are worrying unnecessarily

You children will have had the use of the property for the next few years and even if the property is worth less that you paid for it the shortfall is going to be minimal in the great scheme of things.

Is it really worth you fretting about this small problem when you have so much else in your life to sort out?

tim

Jem8472

Hello, I am just wondering if someone could tell me, how far can we get before we start incurring costs for finding out how much it would cost to extend our lease?

We have about 73 years left on the lease and we have been told it could be tricky to sell with only 73 years so maybe to extend.

I know we don't have the money right now but I would like to find out how much it would cost. Can I ask for this figure for free?

Thanks

Goldengraham

Hi all,

I'd be grateful if anyone in the know can give advice on the following;

1. At what point are you entitled to procure the freehold to a leasehold flat -would this be at point of purchase or do you have to own the property for two years as is the case for extending the lease? The vendor won't entertain acquiring the freehold prior to our purchase.

2. Does freehold ownership entitle you to alter the fabric of the building without landlord consent? We'd like to convert the loft of a top floor Victorian but are wary of the landlord wanting his cut for giving permission. Obviously subject to planning consent.

3. The property of interest is one of two flats in a Victorian conversion; we understand you need 50% of owners to agree to take on freehold management in order to acquire the freehold. By this definition I -being that 50% in owning one of the two flats- would be able to proceed without cooperation from the other flat. Is this correct? I have also read somewhere that both parties would need to agree where the building only houses two flats, yet everything I can find now only cites the 50% ruling.

4. We understand the lease charges the top floor flat with upkeep and costs of the roof, yet there is still a £450 service charge per annum. Does this seem strange? Moreover the lease makes no mention of ownership of the loft and access rights. Again comments on this matter would be appreciated. The two statements seem to be in conflict and you might expect the loft to be cited in the lease. We are seeking clarity through our solicitor, but with a rather tardy landlord we don't expect a quick reply and this may jeopardise the purchase, such that we may have to take a gamble.

You'll have gathered we are looking to buy a top floor flat, to gain a 3rd bedroom through a loft conversion, the flat has a 93 yr lease and I leasehold property is prone to all sorts of problems.

Naturally we are considering whether we'd purchase without the loft conversion and may still proceed regardless, but it is a serious frustration that throws things in doubt.

Thanks in advance for any and all feedback

lolat332

A bit off topic but we manage our own properties via a private co. we purchased the free holds and extended the leases some years ago now.

There used to be a forum where people like us could get advice on the day to day running of the business and the properties. Problem is I can't find it ! Can anyone help.

propertyman

lolat332 wrote: »

A bit off topic but we manage our own properties via a private co. we purchased the free holds and extended the leases some years ago now.

There used to be a forum where people like us could get advice on the day to day running of the business and the properties. Problem is I can't find it ! Can anyone help.

landlordzone long leasehold forum:cool:

propertyman

I am afraid that you have to learn about leasehold property

Q1 You can’t. Both flats owners may collectively exercise the right to buy the freehold of the building.


Q2 If you do buy the freehold jointly then you would still have your individual leases for what you own.That means that you would jointly have to agree to any alterations and the alteration to the lease.

If you jointly exercised the right to buy the freehold but you both nominated you to be the sole owner eg other flat cant afford it, then as freeholder of the building you could give yourself consent but would still have a lease for your flat and have to alter it accordingly.


Q3. See above. Its more than 50 % not 50%

q4.It makes no mention and therefore that means that it is retained property, the freeholder's. Just because it is there doesn’t mean you can have it or access it, nor shouldn't have to pay for it's upkeep

Your SC is for the upkeep of the building and common areas as set out in the lease.

Bear in mind that if you do buy the freehold the price will include the potential for the loft conversion

notsurewhereIstand

The leaseholder pays the freeholder's solicitor costs, does it say somewhere that these have to be 'reasonable' or other?

propertyman

notsurewhereIstand wrote: »

The leaseholder pays the freeholder's solicitor costs, does it say somewhere that these have to be 'reasonable' or other?

yes if you use the statutory rights.

if its a private agreement then it what you agree.

notsurewhereIstand

It was statutory under the 1993 act.

Should I look into the detail in the 93 act for freeholder's solicitor obligations and reasonable costs?

I've already found that they've been fined three times in the past by the Legal Ombudsman.

notsurewhereIstand

'Reasonable costs' appears to be mentioned in section 60 http://www.legislation.gov.uk/ukpga/1993/28/section/60

I like the bit in 60(2)

"any costs incurred by a relevant person in respect of professional services rendered by any person shall only be regarded as reasonable if and to the extent that costs in respect of such services might reasonably be expected to have been incurred by him if the circumstances had been such that he was personally liable for all such costs."