Extend Your Lease guide discussion

smilalott

Depends how keen you are to extend the Lease, to go the Section 42 route you will need to have owned the property for 2 years. Unless you can get the rights to the lease extension transferred something I'm attempting to do but it can be a little tricky to get the timing correct.

Marriage allowance won't take affect until 80 years so you have time to wait. You usually put the current ground rent in the calculator, but as you have such a high rent this figure will definitely sway dramatically the amount of compensation to pay.

Until you get a proper valuation you won't really know if the Lessor figure is competitive. If you intend to sell the property before 2 years then it will be in your interest to negotiate it now, back up to 99 years as then the flat will achieve a comparable value to a freehold property, but that rent might put off prospective purchasers!

Personally with such a high rent I would go for the 90 years (so wait 2 years or get the extension rights signed over), reduce the rent to £0. If your valuation is greatly in excess of the freeholders go down the Lease Tribunal route as you then don't have to pay their costs. I think either way if you,re serious you need to get a proper valuation before making any decisions.

Becust

I have 100 years on the lease of a studio flat in a locally listed building. The estate agency that manages the place has sent us, owners, letters indicating that the freeholder in interest in buying the properties and we think they might want to knock the building down for a new development. If in 10 years time I want to renew the lease, can the landlord totally refuse to do it?

System

Becust wrote: »

I have 100 years on the lease of a studio flat in a locally listed building. The estate agency that manages the place has sent us, owners, letters indicating that the freeholder in interest in buying the properties and we think they might want to knock the building down for a new development. If in 10 years time I want to renew the lease, can the landlord totally refuse to do it?

I always thought that anyone who has owned the leasehold property for at least two years was allowed to force a statutory extension upon request. Someone else with more expertise may be along shortly to confirm/refute that though.

propertyman

Becust wrote: »

I have 100 years on the lease of a studio flat in a locally listed building. The estate agency that manages the place has sent us, owners, letters indicating that the freeholder in interest in buying the properties and we think they might want to knock the building down for a new development. If in 10 years time I want to renew the lease, can the landlord totally refuse to do it?

If you extend the lease, yes they can.

http://www.legislation.gov.uk/ukpga/1993/28/section/61

You might want to think about agreeing an option with them for the time when you do want to sell.

:eek: But bear in mind that if they do buy up flats, they will be rented out, and as the redevelopment time draws near, they have little interest in maintaining the flats, inside or out, to a standard that makes them saleable ( by you), nor a better quality of occupant.

liam1989

sooooooo, ive had a response back from the freeholder regarding my inital offer of 5k to extend the lease by 90 years.

he wants 16k!!!!!!

had to laugh when i read this. obviously i will be contesting this.

looking very likely that i may have to go to a tribunal at this rate if we are so far apart with our valuations

AndyGuil

liam1989 wrote: »

sooooooo, ive had a response back from the freeholder regarding my inital offer of 5k to extend the lease by 90 years.

he wants 16k!!!!!!

had to laugh when i read this. obviously i will be contesting this.

looking very likely that i may have to go to a tribunal at this rate if we are so far apart with our valuations

What number did you get on the MSE calculator for lease extensions?

liam1989

AndyGuil wrote: »

What number did you get on the MSE calculator for lease extensions?

afternoon Andy,

the mse calculator quoted a premium between 7-8k. myself and my solictor have also looked at the calculator on the lease-advice website and that quotes a similar number (6-7k).

AndyGuil

liam1989 wrote: »

afternoon Andy,

the mse calculator quoted a premium between 7-8k. myself and my solictor have also looked at the calculator on the lease-advice website and that quotes a similar number (6-7k).

I agree it shouldn't be as high as the freeholders claim. Fortunately you have the law on your side.

solentb

Hi


I have a question about validity of a Section 42 notice.


I bought a flat at auction from the administrators of a bankrupt company.
The administrators served a Section 42 notice before completion so that it could be transferred to me to continue the lease extension process.
So far, so good.
The freeholder is now questioning the validity of the Notice - because it was from the administrator - and will no doubt use this as a bargaining tool to get a higher price or put me off for two years.


Are they correct in saying it was invalid?
If so, do I have any recourse against my solicitor or the administrators solicitor for not realising this at the time?


Thanks.

liam1989

AndyGuil wrote: »

I agree it shouldn't be as high as the freeholders claim. Fortunately you have the law on your side.

Yes exactly. To be fair, the letter from the freeholder's solicitor did state it was an 'informal' offer.

Therefore, I imagine that the next step he will take, is to have a survey completed, which will give him a more realistic valuation.