Lease hold advice

M.Johnson_2

Could I please ask some advice on a lease hold?

What does the premium mean? If the premium is 150K, does that mean it could be bought out for 150K?

It says "In consideration of the Premium of 150K and the annual rent of ......."

So could the lease be bought out for that premium at any time?

richardw

How long is the lease?

M.Johnson_2

richardw wrote: »

How long is the lease?

999 years from 2007.

There is nothing at all about inflation adjusted. So I would expect it depends on what it says in the lease. If there is no mention of increase then it gradually will become an irrelevant figure.

tim123456789

not enough information

the term Premium is usually used for commercial leases. is this what you are asking about?

If it is, the answer to your question is no. The Premium is the price that you pay the current leaseholder to take over his lease on the terms already negotiated, terms which are presumably advantageous over a freely negotiated lease (otherwise the premium would be zero).

BitterAndTwisted

Sounds to me that the "premium" is what the original vendor bought the property's lease for in 2007

cattie

I have to agree with B&T on this as I'm pretty sure that phrase has been used in leases on past properties I've owned.

M.Johnson_2

I would never be interested in buying out the lease, unless that amount is also going to go to almost nothing over time with inflation eating away at it. As far as I understand these leases that are not inflation linked will over time be insignificant. If inflation keeps going up the way it is, then whats the point of having a fixed rent each year. It will eventually be insignificant over a 1000year lease.

What I am concerned about is the lease holder objecting to future plans. Is there any way to find out about what they will allow and what they may object to regarding planning things on the land?

cattie

It is the freeholder who can object to any future plans, not a leaseholder. No there is no way to find out what they may or may not object to as they might not even know themselves until the question arises. Besides, even if they were to say yes to something, the planning office/building control may well say no.

Some leases contain clauses or state any prohibitions, so the lease needs to be read very carefully & understand that when you buy leasehold you can not take for granted being allowed to do what you want to alter the structure etc. without the freeholder's permission.