Flat lease extension Advice

Katz22

Hi,


I am just starting the process of extending the lease on my flat. I've visited the Leasehold Advisory Service website but I am looking for advice about making initial contact with the Freeholder. Of the two solicitors I have contacted so far, one suggested going straight to the Section 42, the other to send an informal letter to my Freeholder myself.


My questions:


a) If I send an informal letter with an amount based on a lease extension calculator do I put myself at any disadvantage? I assume I can still then do the Section 42 if I have an issue?


b) Do I have to get a flat valuation before contacting the Freeholder? I know the previous sale prices from online sites, so I know roughly what they are worth. I also know the approximate amount the other owner paid for their lease.


c) If I send the informal letter is there a suggestion on the wording? (I've searched online but nothing helpful)


d) There are other owners who wish to extend their lease. Would you agree we are stronger to do this together? Would you send a group letter or individual ones?


Details:


- Lease term left: 55yrs


- I've lived there for more than two years


- Freeholder has already extended the lease for one owner so I do not foresee any issues in contacting them.




Thank you for reading this far!

eddddy

Katz22 wrote: »

a) If I send an informal letter with an amount based on a lease extension calculator do I put myself at any disadvantage? I assume I can still then do the Section 42 if I have an issue?

Should be OK - maybe use the phrase "without prejudice".

I also know somebody who got a good result by serving a an s42, then making a slightly higher "without prejudice" informal offer, to avoid high legal/professional fees.

If you negotiate informally, make sure you get the same terms as a statutory extension (+90 years, peppercorn ground rent). Don't fall into the trap of a cheap extension on bad terms.

Katz22 wrote: »

b) Do I have to get a flat valuation before contacting the Freeholder? I know the previous sale prices from online sites, so I know roughly what they are worth. I also know the approximate amount the other owner paid for their lease.

You don't need a valuation for informal negotiation - but realistically, you will if you want to serve a s42.

Katz22 wrote: »

c) If I send the informal letter is there a suggestion on the wording? (I've searched online but nothing helpful)

"without prejudice"

Katz22 wrote: »

d) There are other owners who wish to extend their lease. Would you agree we are stronger to do this together? Would you send a group letter or individual ones?

It might reduce your legal fees if you all used the same solicitor, and a valuer might give you a "bulk discount" if he/she does all the valuations in one visit.

Katz22 wrote: »

- Freeholder has already extended the lease for one owner so I do not foresee any issues in contacting them.

Ask that leaseholder how much they paid and what terms they got. If it all sounds ok, you could try offering the same.

Katz22

Thank you for the response. The "without prejudice" statement was new to me and I'll add it to my letter.


The other person extending their lease is selling the flat so the amount they have paid might be a little higher as they have potentially paid a premium to speed up the process for the sale? I base this on the lease calculator figure being quite a bit less.


If anyone is currently extending their lease I would be interested to hear about their progress!