Extend Your Lease guide discussion

[Deleted User]

Why haven't you gone down the formal route? The freeholder can run rings around you other wise and your groundent will be zero or peppercorn.
https://www.lease-advice.org/article/lease-extension-of-leasehold-flats-the-two-routes/
https://www.leaseholdknowledge.com/informal-lease-extensions-are-pure-poison
https://www.moneysavingexpert.com/mortgages/extend-your-lease/

hencloud_2

I would always recommend the formal route. There are so many traps and angles that unscrupulous freeholders can use. The formal route avoids all those problems and is a much cleaner and more efficient process.

eddddy

hencloud wrote: »

I would always recommend the formal route. There are so many traps and angles that unscrupulous freeholders can use. The formal route avoids all those problems and is a much cleaner and more efficient process.

I'm not sure it's cleaner or more efficient to take the statutory/ formal route.

It often takes 6 to 18 months to complete, and the leaseholder might have to pay £2k to £4k in fees.

If you can informally negotiate a fair deal with your freeholder, it's likely to be quicker and with lower fees.

But if you have a 'difficult' freeholder, the statutory route might still be the best option.


Edit to add...

A good solicitor should ensure that you don't fall for any tricks from an unscrupulous freeholder.

desamax

Please sign and share the petition to abolish leasehold

https://petition.parliament.uk/petitions/238071
There’s a National leasehold campaign group on FB plenty of good advice there too

soffie

oh desamax what a interesting petition!
A friend of mine is Leasehold & has nothing but issues - why are lease extensions even a thing its practically bankrupt her, i feel so so sorry for her as shes in sense had to pay another deposit on top of initial purchase deposit.. hardly easy!

KrunalShah

Hi All

i am in a process to extend the lease for my flat. I have been searching the process everywhere and I wondered if someone can give me some suggestions.

Do leaseholders need to do a separate valuation of the property or is one done by freeholder is sufficient?

Thanks
Krunal

eddddy

KrunalShah wrote: »

i am in a process to extend the lease for my flat. I have been searching the process everywhere and I wondered if someone can give me some suggestions.

There are 2 routes to extending your lease...

An informal lease extension
A statutory lease extension

See: https://www.lease-advice.org/article/lease-extension-of-leasehold-flats-the-two-routes/

Also see: https://www.lease-advice.org/advice-guide/lease-extension-getting-started/

KrunalShah wrote: »

Do leaseholders need to do a separate valuation of the property or is one done by freeholder is sufficient?

It depends whether you are taking the informal route or statutory route.

It also depends whether you trust the freeholder and their valuer (and/or if you are happy to pay what the freeholder's valuer says).

Freeholder's valuers will often value high, because they want to get more money for the freeholder.

If you instruct a valuer, they are likely to value much lower, to help you pay less to the freeholder.

0labisi

Hello all. I live in a groundfloor maisonette. I am looking to extend the lease. I envision this being the first of many posts

To do this the freeholders management company say I must pay a fee and they will send out a surveyor who will report and they will then give me a price....I am fine to do this however do I have to use thier surveyor, or is it more impartial if I get my own?

To start the process should I go ahead with the survey as above or instruct solicitors right away

next query. I cannot remember how long is left on the lease i am thinking it is just over 80 years. When I bought the property in 2011 it had over 90 years on it but this was done via a deed of variation. I have looked and I cannot find this in my papaerwork, i can find everything else! Where can I get a copy of this from?

Thanks in advance

Suzy14

My parent has a short lease on his maisonette of about 30 years left from a 99 year lease.
We understand that if this is renewed the cost could be an enormous amount of about £80000. The value of the property with a short lease is about £250000.
Does this seem fair that the freeholder can charge so much.?
Is there any way that we may be able to reduce this cost.

I would appreciate any advice

Thank you.

eddddy

Suzy14 wrote: »

My parent has a short lease on his maisonette of about 30 years left from a 99 year lease.
We understand that if this is renewed the cost could be an enormous amount of about £80000. The value of the property with a short lease is about £250000.

According to this lease extension calculator, £80k would be cheap for a Statutory Lease extension:

https://myleasehold.co.uk/lease-extension-calculator/

Is £80k a figure suggested by the freeholder? If so, what are the terms (ground rent and number of years)?

If the freeholder is offering it that cheap, they may be slipping in some nasty terms (which might make the maisonette unmortgageable for any future buyers).


Edit to add....

Are you sure that it's worth £250k with the current lease of 30 years? That might mean it's worth £450k to £500k with the lease extended.