Lease extension

nickyboi

ok so another update...

after using the online calculator and trying to work out exactly how long is left on the lease it has become apparent as of December 2013 it ticked down to 79 years, probably why the freeholder is quoting more than we thought for the premium.

As the current owners applied for the quote in november before the lease dropped to 79 does this mean that the freeholders are entitled to any marriage values or does it go by the date they first applied?

AndyGuil

nickyboi wrote: »

ok thanks for the advice.

My current solicitor seems to be pretty clued up with the lease extension so he should be able to handle it but being the weekend I need to wait till monday to get some advice off him hence why im here.
So does the quote that I posted above seem as if the freeholder has been approached informally? Also if this is the case how do I go about negotiating without going the route of surveyors? Can I just send a counter notice saying I would be willing to pay £5000 plus your fees if the ground rent is to increase or do I require a surveyor to do this for me?

Thanks

I'm not sure about needing the solicitor as I have not considered this in mine. If you can get the 99 year addition to the current lease and peppercorn ground rent at the price you found only (plus perhaps £1/2k) then that would be attractive. If they don't play ball with this then the solicitor should be able to get the statutory route kicked off. Worth doing this before exchange.

79 years means marriage value. It won't be much at this stage but you need to factor in the surveyor fees now. You can still get 99 years addition and peppercorn ground rent.

nickyboi

I don't know if you would know but the quote dated from the freeholder is the 18th of December where as the the lease turned 79 years on the 25th and have to respond by 90 days. Will marriage value actually apply because of this?

AndyGuil

nickyboi wrote: »

I don't know if you would know but the quote dated from the freeholder is the 18th of December where as the the lease turned 79 years on the 25th and have to respond by 90 days. Will marriage value actually apply because of this?

I don't like that quote because it is not a lease extension of 99 years and not at peppercorn ground rent. However it may be more reasonable that requoting at 79 years.

mart.vader

Contact these people. they take a while to answer, but they're government funded and should know their onions without being out to screw you. http://www.lease-advice.org

Just to clarify - are you buying a house or a flat ?
A peppercorn rent is actually £0 in legal terms - if anyone argues with you, go to the grocers, buy a pack of 200 peppercorns for about £1 and give them one!

You can't send the FH's a counter notice on the statutory route - you can only send them an initial notice. You can make a counter offer, though.

If the sellers have offered £4,000 and you only have to input £1,000 plus surveyors fees, if I understand you right, that sounds very acceptable.

Jeffrey_Shaw

ognum wrote: »

Are you sure the lease us not being extended by 99 years as this is the norm?

No, it's not.
The norm- under s.42 of the Leasehold Reform Housing and Urban Development Act 1993- is a ninety year extension to the existing lease.