Extend Your Lease guide discussion

Tom99

https://www.lawcom.gov.uk/project/leasehold-enfranchisement/

[FONT=Verdana, sans-serif]There are a number of suggested proposals for simplifying the leasehold extension price for flats in this consultation paper.[/FONT]

[FONT=Verdana, sans-serif]Some I think are very unlikely to make it, for example a straight multiplier of the current ground rent.[/FONT]
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[/FONT][FONT=Verdana, sans-serif]The more realistic suggestion is to fix the discount rates used for the ground rent and reversion to reduce the number of area for negotiation and make the whole process simpler.[/FONT]
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[/FONT][FONT=Verdana, sans-serif]The other suggestion is to remove the 80 yr cap on sharing marriage value, so if your outstanding lease is 85ys 100ys or whatever you would still have to pay a share of marriage value.[/FONT]
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[/FONT][FONT=Verdana, sans-serif]I can quite see the last point making it, particularly if discount rates are fixed at a little higher than the current average, thus reducing the premium the leaseholder pays.
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[FONT=Verdana, sans-serif]That could result in flat owners with say 80y-100y leases actually paying a higher premium to extend the lease than under the current law, something for them to think about.[/FONT]

strawberries1

Should the freeholder be served with notice of assignment of the S.42 Notice and/or the S.42 Notice be registered at the Land Registry?

The freeholder sent their counter notice to the seller's solicitor as well as their request for access for survey. This is 2 months after sale was completed.

They were served with notice of charge and assignment of the lease. Must another notice be served to them for the S.42?

Thanks.

da_rule

strawberries1 wrote: »

Should the freeholder be served with notice of assignment of the S.42 Notice and/or the S.42 Notice be registered at the Land Registry?

The freeholder sent their counter notice to the seller's solicitor as well as their request for access for survey. This is 2 months after sale was completed.

They were served with notice of charge and assignment of the lease. Must another notice be served to them for the S.42?

Thanks.

Yes it should have been. Also, the freeholder only has to give 3 days notice for inspection for valuation purposes, so if the deadline has passed then the legislation allows the freeholder to deem the application as withdrawn.

kimlan

Hi there, sorry if this has query has been asked before.


I was successful in getting an agreement for a lease extension with the landlord/maintenance company with their solicitor who supplied an agreed surrender and lease form. They told me to register the document with the land registry. The land registry told me, I could not request it myself as I had a restriction on it, which was applied by the bank that I recently remortgaged with. My mortgage lender sent me a letter that I *must* appoint a solicitor to meet their demands for consent to update the land registry which include a signed deed of substituted security, confirmation that the lender's security is not affected by the lease extension change and an administration charge of 85 pounds.



I was wondering if this usual behavior by the mortgage lender as it seems and excessive and an excuse to squeeze money out of borrower. Is there anything I can do about this or am I forced to abide the lender's demands.

Tom99

kimlan wrote: »

Hi there, sorry if this has query has been asked before.

I was successful in getting an agreement for a lease extension with the landlord/maintenance company with their solicitor who supplied an agreed surrender and lease form. They told me to register the document with the land registry. The land registry told me, I could not request it myself as I had a restriction on it, which was applied by the bank that I recently remortgaged with. My mortgage lender sent me a letter that I *must* appoint a solicitor to meet their demands for consent to update the land registry which include a signed deed of substituted security, confirmation that the lender's security is not affected by the lease extension change and an administration charge of 85 pounds.

I was wondering if this usual behavior by the mortgage lender as it seems and excessive and an excuse to squeeze money out of borrower. Is there anything I can do about this or am I forced to abide the lender's demands.

[FONT=Verdana, sans-serif]You are varying the lease you used as security for the loan so they have every right to be involved and insist a solicitor is appointed to act for them.[/FONT]
[FONT=Verdana, sans-serif]It sounds like you are planning to extend the lease without legal advice yourself which unless you are a legal expert would not be advisable.[/FONT]

strawberries1

da_rule wrote: »

Yes it should have been. Also, the freeholder only has to give 3 days notice for inspection for valuation purposes, so if the deadline has passed then the legislation allows the freeholder to deem the application as withdrawn.

In order to get the freeholder to communicate with me direct re S.42;
1. Do I have to register the benefit of the Assignment (of S.42 Notice) at the land registry?
2. Do I need to serve notice of assignment of S.42 Notice to freeholder? Doesn't the notice of assignment of lease suffice?

Thanks.

seven-day-weekend

After several months of angst, my son's lease extension will complete tomorrow or Friday.

He will now have 125 year lease. It cost £13.5k including all legals.

Glad it is done and dusted!

strawberries1

seven-day-weekend wrote: »

After several months of angst, my son's lease extension will complete tomorrow or Friday.

He will now have 125 year lease. It cost £13.5k including all legals.

Glad it is done and dusted!

Congrats! This was negotiated via involuntary not via statutory?

seven-day-weekend

strawberries1 wrote: »

Congrats! This was negotiated via involuntary not via statutory?

Yes, it was negotiated by a specialist leasehold enfranchisement valuer. ( However the solicitor says it is statutory?). Well worth the extra fee of £700. It was only eighteen years shorter than the statutory, and much cheaper. Ground rent goes up by £100 every 25 years, starting at £100 p.a. Lease now finishes in 2143.:):T

I would think if you have a decent freeholder, then you could negotiate the price yourself and save £700, but in this case it was worth the money to have the specialist.

strawberries1

How To Choose A Valuer.

I've received the freeholder's counter notice to my S.42 lease extension claim.

I'm looking to instruct a valuer to do a valuation and negotiate the premium.

I used the Leasehold Advisory service website and two other calculators to determine the premium (slightly reduced) which I used.

How do I determine which valuer to go with? They all have a fixed fee for the valuation and report.

Shall I go for a desktop valuation? I bought the property 2 months ago.

Some charge a fixed fee for negotiations. Shall I go by way of fixed fee or hourly? The disparity between my premium and the freeholder's is £6,000.
One valuer charges a fee to start the negotiation then 10% of the reduction they achieve. This is aside the fixed fee for the inspection and report.