54 year lease.

shellyruby

hi,
hoping for some advice,i have been trying to buy the flat ive been renting for nearly 5 years thanks to lease problems,i know this seems like a huge amount of time but prices being what they are in london i cant afford anything else.the vendor and i are in contact and have sorted out a price between ourselves for 140 g and extension of the lease for 15 g to be done back t back with the mortgage,the flat was valued at 180 but the price difference is due to there being just a 54 year lease and the vendor is selling it for a deceased family member so he cant put it to high due to capitals gains and inheritance etc.the freeholder was absent for a good few years ,he is now back on the scene and the vendor and freeholder verbally agreed on 15 g for the lease extension a good few months back,a lease valuation was done and we are waiting to hear the price.the vendor says that we arent paying any more for the lease and he will negoiate with the freeholder if hes greedy.we have our mortgage in place but what i would like to know is this to much or to little or how much could he pointentially charge and do they do the lease valuation on the price we are actually paying or the price the flat is worth,sorry to ramble but my head is spinning with all this lease stuff ive read.thank you very much for reading.

reformedEffortMaker_2

not sure is my honest answer, but have you tried looking here for help?

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

EdInvestor

This might help

http://www.tenancy-agreements.co.uk/lease.php

If the difference between the price you are paying and what the flat is worth with the new lease is a lot, then the price might be quite high.

shellyruby

thank you very much for replys,this is the first time ive posted,the difference between what we are paying and what the flat will be worth is about is about 40 thousand.i will check out that website.thanks again.

LandyAndy

Please use a smaller font.:D

shellyruby

thank you for the links.i have tried to calculate it via the link but im not sure of the yield percentage or what it means to be able to work it out.i have heard of the marriage value and as mine is under 70 it would apply and have heard of th yield but how do i work it out.thank you i would never have found those links ,the calculator one is great,at least i can see a rough estimation and have a clue if im being charged over the odds or if the freeholder can raise it higher than 15 grand.

hedgehogpenguin

yield is 4.75% i believe

shellyruby

thankyou hedgehogpenguin,how do i work out the yield.

EdInvestor

You don;t work it out you look it up.The figure to use is 4.58%.

How long a lease extension is being discussed?Up to 190 years is possible IIRC, 126 years is more usual, the shorter the cheaper.

shellyruby

the amount of years being discussed is 99 years so we will have 153 years remaining,is it possible to buy less years on the lease or can the freeholder dispute this only selling the amount he wants..thankyou for the yield info,i have been back on the link ,im not sure what to put in for the marriage value..ive read a bit about it but it seems so complicated..who is liable for the fees as we are in the process of buying it while renting it so im hoping that the landlord/vendor should have to pay it and that we wont get stuck with legal fees afterwoods,the other thing im concerned about is that weve had to delay our own valuation with our mortgage company until we find out the lease price as wev got a loan amount with the exact amount of money that the vendor and freeholder verbally agreed a few months ago and im a bit nervous as i have read that lease extensions can take 6 months or more to go through and as its going back to back with the mortgage and i think the valuation and mortgage offer will only last for 6 months..thank you so much for all your replys,im very grateful.:T

hedgehogpenguin

marriage value most likely 50%..