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Extending lease on flat
ChrisC360
Posts: 3 Newbie
Hi all,
I often read through these forums for useful advice and have decided it's about time to register and see if anyone can help me out!
I currently own a leasehold flat in a block. I purchased the flat at the end of 2006 - it was originally on the market for 135k, reduced to 130k by the seller for a quicker sale and I paid 125k. A year later an identical flat in the same block sold for 130k.
The lease on my flat has 61 of the original 99 years remaining and so I am looking to extend this as I want to put the flat on the market this year.
Having looked around on the internet I understand that legally I can add 90 years to the remaining term - giving me 160 years. Using the calculator on this site, I would guess I would be looking at around 14-16k to do this, plus fee's.
I decided to contact the managing agent direct to query the lease extension, they have replied and offered me the following:
A deed of variation - extending the lease back up to 99 years at a cost of £8750 plus £475 in fee's.
An increase in the ground rent to £250 per year doubling at 25year intervals (it is currently £80).
I was wondering if this seems like a decent offer - obviously by doing it this way I would save some of the costs associated with using a leasehold extension company and just have mine and the landlords solicitors fee's to pay.
Any comments would be appreciated!
Many Thanks,
Chris.
I often read through these forums for useful advice and have decided it's about time to register and see if anyone can help me out!
I currently own a leasehold flat in a block. I purchased the flat at the end of 2006 - it was originally on the market for 135k, reduced to 130k by the seller for a quicker sale and I paid 125k. A year later an identical flat in the same block sold for 130k.
The lease on my flat has 61 of the original 99 years remaining and so I am looking to extend this as I want to put the flat on the market this year.
Having looked around on the internet I understand that legally I can add 90 years to the remaining term - giving me 160 years. Using the calculator on this site, I would guess I would be looking at around 14-16k to do this, plus fee's.
I decided to contact the managing agent direct to query the lease extension, they have replied and offered me the following:
A deed of variation - extending the lease back up to 99 years at a cost of £8750 plus £475 in fee's.
An increase in the ground rent to £250 per year doubling at 25year intervals (it is currently £80).
I was wondering if this seems like a decent offer - obviously by doing it this way I would save some of the costs associated with using a leasehold extension company and just have mine and the landlords solicitors fee's to pay.
Any comments would be appreciated!
Many Thanks,
Chris.
0
Comments
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Perhaps re post here https://forums.moneysavingexpert.com/discussion/3825027Posts are not advice and must not be relied upon.0
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I would strongly recommend that Chris seeks specialist advice. The offer may seem reasonable on the face of it, but a high ground rent:-
a) has a value to the freeholder, and
b) may put off a future purchaser of the flat.
Also a 99-year lease is doesn't take long to become a short lease...NICK PLOTNEK
A specialist Leasehold Reform practitioner for 30 years, who helps leaseholders exercise their right to buy their freehold or extend their lease.0 -
But if you only plan to be there for a few years a 93 year lease is not going to have any effect on value.
As to a higher ground rent before agreeing to that a tour of the estate agents windows, real and virtual to see what local ground rents are, will allow you to see if your new GR in similar to that which a buyer will be seeing on other properties.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0
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