Extending the lease on shared ownership property.

SimonDixon

Hello,

I've just joined this forum as I have a question regarding extending the lease on my shared ownership property and haven't been able to find an answer anywhere.

I own a 50% share in a 2 bed semi in the south of England and want to extend the lease as its just dropped below 80 years (it will fall to 78 years, January next year).

As I have a finite budget I'm trying to work out the figure for the premium. The Housing Association and their solicitors will not give me even a rough ballpark figure and I'm concerned that if I proceed the premium could end up far more expensive than I can afford. I realise that an accurate cost is not really possible without a property valuation and probably numerous other things, but I'd like to know if anybody can give me an indication of the premium cost.

The property was bought in 2006 and valued at £194,000. I have exactly a 50% share. The Housing Association and their solicitors have already told me what their fees are and I've spoken to my solicitor and have agreed a fee with them for their work, but without an indication of the cost of the premium, I don't know if I can afford to proceed.

Thanks

Simon

Mr_Thrifty

Why not ask the freeholder what their price will be?

I'd imagine around £5,000 or so. Would have been more like £500 according to LVT guidelines, had you done it 2 years earlier (under 80 years and you start taking reversal values into account).

SimonDixon wrote: »

Hello,

I've just joined this forum as I have a question regarding extending the lease on my shared ownership property and haven't been able to find an answer anywhere.

I own a 50% share in a 2 bed semi in the south of England and want to extend the lease as its just dropped below 80 years (it will fall to 78 years, January next year).

As I have a finite budget I'm trying to work out the figure for the premium. The Housing Association and their solicitors will not give me even a rough ballpark figure and I'm concerned that if I proceed the premium could end up far more expensive than I can afford. I realise that an accurate cost is not really possible without a property valuation and probably numerous other things, but I'd like to know if anybody can give me an indication of the premium cost.

The property was bought in 2006 and valued at £194,000. I have exactly a 50% share. The Housing Association and their solicitors have already told me what their fees are and I've spoken to my solicitor and have agreed a fee with them for their work, but without an indication of the cost of the premium, I don't know if I can afford to proceed.

Thanks

Simon

Mr_Thrifty

I think the main point from this, however, is to:
a) avoid shared ownership
b) avoid leaseholds.

I know this is simplistic, but frankly I think they're both the sort of thing that led to this property bubble in the first place (because they enable people to over-stretch themselves and encourage people to think about property as an investment rather than a home).

poppysarah

There's a forum about leaseholds that's really useful.
Not sure which one is it though as a quick search bought up
http://www.lease-advice.org/calculator/

AMO

No matter what, just make sure that your lease does not drop below 70 years. If it does, you'll lose a lot when you come to sell. Also bear in mind that it takes time to sell.

SimonDixon

Thanks for the replies. I will get this sorted ASAP. I didn't realise how much the cost increases once it falls below 80 years.