Lease Extension Voluntary Route

stevie-g_2

Hi All,


I have decided to extend our lease before it gets below 80 years (it's on 81) and I have gone down the voluntary route with our landlord, a shared ownership group, as this is the only option available to us with a shared ownership mortgage.


We are still waiting on the surveyor turning up but they offer the choice of extending the lease by 99 or 26 years.


Has anyone had any experience of how this works and how they would work out the 26 years option? Do they just divide the amount they come up with by 4 (after legal costs etc.)?


Thanks
Steve

TrickyDicky101

How much is your Ground Rent and what provisions (if any) exist for future GR increases? That will be a significant determinant of price.

It won't be as simple as 4 times more for the 99 year (which is good for you as it will be less than 4 x).

stevie-g_2

Thanks for your quick response!


Ground rent is currently £10 a year, this will increase to £100 a year for the first 33 years, £200 a year for the next 33 and then £400 for the remainder of the term.


50% share of flat purchased at £185 000 5 years ago, now currently valued by estate agent at £330 000.


I've tried getting information from the landlord but no luck, and the online calculators all say they are not suitable for shared ownership.


I'm just trying to get an idea of what's in store so I can start planning on how I'm going to pay for it.