We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Deed of Variation cost
dkryder
Posts: 2 Newbie
Appreciate any advice from people who might have been in similar situation or know what the law is.
I am an owner, of one flat (in a block 4). The leaseholder is a private indv who is currently looking to sell the lease (which covers all flats). all flats were approched a while ago but I didnt want to buy as I knew I would be selling my flat within a years time. Another flat is currently in the process of buying it (but its been dragging on for over 6 months now).
Anyway, in having the flat valued recently to put it up for sale, all agents have said that having 72 yrs left on lease will be a problem selling it.
A couple of years ago, the freeholder did offer to extend the lease (for £10k) - to save on solicitor costs when another flat was being sold and ran into similar problems. I didnt go with it at that time as just didnt have those kind of funds available.
Recently I have asked them to extend the lease for me (for another 15yrs) but was told they didnt want to they in the process of selling the lease (to another flat owner in the block , who but this has been going on for 6 months now and its still not sorted.)
I am trying to find out;
1) do I have "Right to extend" with the current leaseholder?
2) what would be a reasonable cost to charge for this deed of variation to increase the term by 15 yrs (so 87 yrs remaining).
We pay peppercorn rent of £25 per annum and £40 monthly maintenance costs. The property is valued at £160k.
3) Is it really likely to be such a problem like the estate agents say and should I just bite the bullet and extend now via deed of variation - or wait & see?
In advance many thanks!
I am an owner, of one flat (in a block 4). The leaseholder is a private indv who is currently looking to sell the lease (which covers all flats). all flats were approched a while ago but I didnt want to buy as I knew I would be selling my flat within a years time. Another flat is currently in the process of buying it (but its been dragging on for over 6 months now).
Anyway, in having the flat valued recently to put it up for sale, all agents have said that having 72 yrs left on lease will be a problem selling it.
A couple of years ago, the freeholder did offer to extend the lease (for £10k) - to save on solicitor costs when another flat was being sold and ran into similar problems. I didnt go with it at that time as just didnt have those kind of funds available.
Recently I have asked them to extend the lease for me (for another 15yrs) but was told they didnt want to they in the process of selling the lease (to another flat owner in the block , who but this has been going on for 6 months now and its still not sorted.)
I am trying to find out;
1) do I have "Right to extend" with the current leaseholder?
2) what would be a reasonable cost to charge for this deed of variation to increase the term by 15 yrs (so 87 yrs remaining).
We pay peppercorn rent of £25 per annum and £40 monthly maintenance costs. The property is valued at £160k.
3) Is it really likely to be such a problem like the estate agents say and should I just bite the bullet and extend now via deed of variation - or wait & see?
In advance many thanks!
0
Comments
-
Appreciate any advice from people who might have been in similar situation or know what the law is.
I am an owner, of one flat (in a block 4). (so you own the lease? or freehold?)The leaseholder(errr... do you mean freeholder - very unclear!) is a private indv who is currently looking to sell the lease(if YOU own the flat, and lease, how can he sell the lease - it's yours to sell, not his!) (which covers all flats). all flats were approched a while ago but I didnt want to buy as I knew I would be selling my flat within a years time. Another flat is currently in the process of buying it what? your lease? Or the freehold?(but its been dragging on for over 6 months now).
Anyway, in having the flat valued recently to put it up for sale, all agents have said that having 72 yrs left on lease will be a problem selling it. just about OK but some buyers will have trouble with mortgages
A couple of years ago, the freeholder did offer to extend the lease (for £10k) - to save on solicitor costs when another flat was being sold and ran into similar problems. I didnt go with it at that time as just didnt have those kind of funds available.mistake.
Recently I have asked them to extend the lease for me (for another 15yrs) but was told they didnt want to they in the process of selling the lease.... as above - do you mean freehold....? (to another flat owner in the block , who but this has been going on for 6 months now and its still not sorted.)
I am trying to find out;
1) do I have "Right to extend" with the current leaseholder?surely YOU are the leaseholder?
2) what would be a reasonable cost to charge for this deed of variation to increase the term by 15 yrs (so 87 yrs remaining).
We pay peppercorn rent of £25 per annum and £40 monthly maintenance costs. The property is valued at £160k.
3) Is it really likely to be such a problem like the estate agents say and should I just bite the bullet and extend now via deed of variation - or wait & see?
In advance many thanks!
1) if you have owned a lease for 2 years you can insist on extending the lease
2) It's not the cost of the deed you need worry about - it's the cost (value) of the lease extension!
3) see note re mortgages above
Ypu'll get more info here:
http://www.leaseholdadvicecentre.co.uk/Lease%20Extension.htm0 -
I am sorry for the confusion with terminology.
I own the flat which is a leasehold property. The lease has 72 yrs remaining.
The lessor (a private indv) is in the process of selling the freehold & one of the occupiers of another flat is in the process of buying it (albeit dragging on)
What would be a reasonable cost for me to extend the lease for another 15 yrs by deed of variation?
Thanks for the link - very useful!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards