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lease extension problems

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
4 replies 474 views
nugget13nugget13 Forumite
5 Posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
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

Replies

  • ognumognum Forumite
    4.8K Posts
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    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!
  • 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
  • ognumognum Forumite
    4.8K Posts
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    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_WebsterRichard_Webster Forumite
    7.6K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    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)?
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
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