lease extension problems

nugget13

Hi there
I am on here browsing because I too am in a state about my lease and was debating whether to sell or try and scrape the money together to extend!
My lease has 83 years remaining but like CFC boy I only realised that it would become a problem when I read an article in the local paper!
I went into total panic about what to do.
I was so angry though, this wasn't pointed out when I was buying by my solicitors or estate agents!
I became a home owner at 38 as I am a single parent and was so pleased but now 7 years later I am gutted to be faced with losing any profit i may have made.
I have decided to take in a lodger and save every penny I get for 18-24 months to try and pay for it.
Anyway rant over, has anyone got any advice though about the steps to take? who pays what costs and at what stage do they have to be paid? and lastly if the freeholder is not being co operative , what to do?
Thank you xx

ognum

I have used this website to find the approx cost of a lease extension

http://www.lease-advice.org/

You need to appoint a lease surveyor who will assess the value of your property today and then submit this to the lease holder, they then appoint there surveyor and you hope they can come to some agreement.

My surveyor cost £800 upfront and you will need to pay the costs of the otherwise as well. You will also have solicitors fees.

Hope this helps!

nugget13

Thank you ognum,I have been told £10,000 to extend but I didnt know what this consists of and how its broken down. As I wont have anything near that amount for quite some time I was hoping to get the ball rolling whilst I saved the money!
Thanks again

ognum

Just some points, everyone says its 10k always but it is often more.

There is a calculator on that website you can get a general feel.

The longer you leave it the more it will cost, especially if your flat is increasing in value, so try to do it earlier rather than later, once you get less than 75years ish you will have to also pay something called 'marriage value' . Read up on website.

A flat I was considering buying and had offer accepted on was going to work out more like 22k by the time I had paid everything. they told me 10K!

Richard_Webster

My lease has 83 years remaining

How long ago did you buy it? If some time ago your solicitors might not have considered it an issue. The costs of extension go up markedly when the lease gets under 80 years.

What is the present value of the property and the amount of the annual ground rent (ignore service charge)?