Extend Your Lease guide discussion

L1bby

The situation I'm in is very odd, there are 10 houses and four flats in our road, each of us owning an equal share of the freehold. Does that mean the house owners can try and squeeze more money out of us?

richardw

L1bby wrote: »

The situation I'm in is very odd, there are 10 houses and four flats in our road, each of us owning an equal share of the freehold. Does that mean the house owners can try and squeeze more money out of us?

How long are the leases, if any?

L1bby

richardw wrote: »

How long are the leases, if any?

We've got about 76 years left to run

SKPatel

prickettandellissurveyors wrote: »

Hi The one thing I can see from all these posts is that there are a lot of questions that need answering and my advice is to find a professional who is experienced in Leasehold work. With regard to legal side a solicitor is best but for valuation issues and negotiations you should contact a surveyor as they are the experts on the calculations. They will also be able to tell you if an offer from the freeholder is fair. Every case is different and what is right for one case may not be in another. For example if you are selling a slightly lower premium for a new 99 or 125 year lease with a new ground rent can be a good option (but be wary about how the ground rent rises because if not looked at carefully the lessee can end up agreeing something that will end up extortionate also if the freeholder is willing to agree as they cannot be forced into this) but if you are intending on keeping the property or passing it on to grand children etc then your statutory right of an additional 90 years with no ground rent is preferable. Any professional confident in their ability should be able to spend a little time discussing your situation, options and how your case is likely to proceed. ALEP is a good place to find someone if you do not have a referral from someone you trust. I am also more than happy to help as I specialise in lease extensions and freehold enfranchisements. Post me a question or contact through our website

With regard to some of the questions already asked

Reecy - it sounds a bit high but cannot tell without a proper valuation. They can withdraw any offer that has been made 'without prejudice and subject to contract'. If a freeholder is pushing for agreement then, in my experience that is usually because they know they are asking too much.

Chris, without a valuation it is difficult to tell and without a value for the flat impossible but bear in mind the ground rent goes up to £4,000 and although that will not be worth, in 100 years, what it is today it may put off a possible purchaser.

Bowski - yes it can be scary for lessees that is why you need professionals on your side that know what they are doing and can explain, advise and support you each step of the way.

Very much agree with Prickett and Ellis. Its always advisable to obtain a valuation or at least speak with a surveyor who can give you an idea of what you should be paying and/or whether you have been offered a reasonable deal.

The same applies to the legal process. If anyone would like a no obligation chat about their options then please do get in touch via our website or drop us an email. We are a member of ALEP and would be happy to put your mind at ease.

Jabberlong

I had a very bad experience with my lease extension with regard to a solicitor taking on the lease extension work who had no idea how to do it! My own solicitor was fine as I chose him carefully, The problem was the solicitor acting fot the othervside who was worse than useless. It took two years to complete the lease extension and therefore I had two years of solicitors fees. The fees were nearly more than the cost of the lease extension. The lease advisory service said unfortunately I couldn't pursue a case against this solicitor as I hadn't instructed him, as he was acting for the other side. I tried get the excess fees refunded to me from the lease extension money I paid to the freeholder but needless to say they never replied.

SKPatel

Jabberlong wrote: »

I had a very bad experience with my lease extension with regard to a solicitor taking on the lease extension work who had no idea how to do it! My own solicitor was fine as I chose him carefully, The problem was the solicitor acting fot the othervside who was worse than useless. It took two years to complete the lease extension and therefore I had two years of solicitors fees. The fees were nearly more than the cost of the lease extension. The lease advisory service said unfortunately I couldn't pursue a case against this solicitor as I hadn't instructed him, as he was acting for the other side. I tried get the excess fees refunded to me from the lease extension money I paid to the freeholder but needless to say they never replied.

I'm sorry to hear you had such an awful experience with solicitors during your lease extension - 2 years is a very long time for a lease extension to complete! This area of law is quite niche and although there are quite a few property solicitors its important that the solicitor you instruct knows this area specifically. You can usually get an idea of this by speaking with the solicitor or by looking at their website.

System

Hello All,

Hopefully this is the right place to post this. I am in the beginning stages of extending my lease by the statutory 90 years. Surveyors have advised a cost of £11-13k plus fees.

Internet research has led me to believe that, in theory, the cost of the lease extension can be added directly back onto the value of the property when you come to sell. I was just wondering if anyone has any experience of this and if they found that to be true?

Thanks!

Red.

notsurewhereIstand

In_The_Red_2009 wrote: »

Surveyors have advised a cost of £11-13k plus fees.

If your current lease is less than 80 years, what do they estimate the marriage value to be?

System

notsurewhereIstand wrote: »

If your current lease is less than 80 years, what do they estimate the marriage value to be?

I don't have the report to hand, but I don't recall seeing anything about a marriage value in it. Do you know if there should definitely have been one? Is that what would indicate the new 'value' of the flat after the extension?

For info, there are 66 years remaining on the existing lease.

Thanks for your help.

Red.

richardw

In_The_Red_2009 wrote: »

...the cost of the lease extension can be added directly back onto the value of the property when you come to sell. I was just wondering if anyone has any experience of this and if they found that to be true?.

If flat prices are rising then the costs and marriage value may be covered by a rise in price, but if the market goes the other way who knows.