council obligation to a fair price lease extension?

tomkut

Dear Moneysavers
Is there an obligation on councils, in contrary to private landlords, to grant lease extensions at a fair price?
Clarification1: this outside the relevant Leasehold Reform Act, meaning through informal negotiation
Clarification2: this regards land lease extension rather than flat/property tenancy issues

Buzby

None whatsoever. They are bound to follow their own policies - as long as they are set down then that is the action they must take. They do not have to be 'fair' to your interpretation!

ging84

i think there is an obligations of fair lease extensions on all landlords not just councils
so no obligation on the council which contrary to the obligations on a private landlord

tomkut

ging84 - I believe you are wrong
Buzby - You do not rule out a possibility of councils imposing such policies on themselves.
By fair I meant market price or average of what a surveyor estimates as min and max for a lease extension.
Are councils not created to serve the society?
What is the reason for the below statements then?
1) "...This is so that we apply the same process to every leaseholder we deal with making the process both fair and transparent."
[DipSurvPract, Leasehold Management Officer, St Albans City & District Council]
2) "Our obligation on all our property transactions which are governed by contract, as in this case, is to value the benefit and additional value arising from the extension on a fair equitable basis. We would not, and could not, exploit the situation."
[Corporate Property and Estates Manager, Cardiff Council]

tomkut

theartfullodger, I just clarified my query post

Road_Hog

tomkut wrote: »

Are councils not created to serve the society?

They may have once been, but now they are political bodies, that seek to impose their ideals and enrich the senior executives of said organisation.

rpc

tomkut wrote: »

Are councils not created to serve the society?

And perhaps that is best served by making something on your lease extension so that the other few hundred thousand residents in the area can benefit?


There is a statutory route that is fair. If you don't want to use that (why not?) you are at the mercy of the freeholder.

tomkut

Thank you Moneysavers. The majority of you thinks that a council is no different to a private landlord in this situation. However, not one of you tried to comment on the two quotes I had provided, which suggest the opposite view! At least two more people told me that they would expect a council to act differently to a private landlord.
I shall let you know if I find out anything more on the subject.

ging84

the 2 quotes you have given do not give the opposite view

i think in one way you are right, yes the council do have more of an obligation to grant a lease at a fair price over an above that of a private landlord, the council have the obligation to get the best return they can to be fair to all council tax payers, where as a private landlord could discount below market rate as much as they want, renew it for free if they wanted.
Although i have a feeling your post was not about councils unfairly granting lease renewals at below market rate.