extending lease with share of freehold

hewkie

I recently inherited my father's flat and want to extend the lease (74 years remain) with a view to selling. He had as one-fifth share of the freehold and was one of five resident/owners who set up their own management company. Two other owners want to extend their leases, one is considering it BUT the fifth is a lawyer and refuses and wants payment.

If the waivering owner joins him, how much can he reasonably ask? Is it based on size or value or rateable value?

HELP PLEASE

propertyman

Unless its held in the company, then your late fathers estate, or you, are joint owners of the freehold, not shares or 1/5th"s".

This is a common problem when FH are bought and no thought given to the leases length and the future.

The freeholder (your group of five people) is entitled to the premium for extending the lease to be agreed or detemined at the Tribunal ( LVT)

In simple terms

- searchback in the paperwork to see if any agreement was reached on this issue at the time
- if not a company then as a group I would hope there is partnership deed or deed of trust to deal with these decisions

In this way, try and explain to everyone that this is an issue that affects everyone and rather than each pay a substantial sum at random times all should extend their leases and therefore get the same benefit and only cost the legal costs of the extensions.

One might refuse on the basis that they can get a nice cheque
and let their heirs deal with a short lease in due course.........

Do check HMLR and the freehold title to see if the leases are all of similar length or not. If they are then the chances of getting majority agreement are more likely.