Leasehold question.. Can I challenge

sibod2002

Hello guys I have posted a few threads the last few days so apologies again in advance .

Basically I own a leasehold house which currently has 75 years left on. The house was originally freehold but was turned into leasehold just before I bought it in 2011 by the previous owners .

The lease created in 2011 stated it was for 99 years from 1992. I am currently paying £300 a year ground rent but from the start of the lease the ground rent doubles every 20 years .

I signed the papers so I know I am bound by the contract. I just wanted Any advice or ideas before I make a move to purchase the lease as I want to sell my house . They have quoted me £15300 to buy the freehold which has jumped from £9000 when they quoted be in January 2015. I am no expert so any advice would be appreciated .

lewishardwick

It could quite easily cost as much to extend the lease. The longer you leave it, the higher it'll get.

I'd try the direct negotiation route. Perhaps offer to pay their legal fees if they accept £10k for the Freehold.

anselld

https://forums.moneysavingexpert.com/discussion/5460589

Did you try the calculators?
Have you had your own valuation?
Have you issued s42 notice?

Why start a new thread when you have not followed up the previous advice?

sibod2002

Thanks for the reply

I have gone down the negotiation route which is ongoing and also have got a solicitor looking over the contract to check it is all legal and correct .

sibod2002

Sorry I did not see you had replied in my previous threat i apologise .

I have tried calculators and it's coming up between 6-8k and yes I have asked for negotiation and am waiting for a reply .

I have not gone down the formal route yet untill I have a reply .

anselld

sibod2002 wrote: »

Sorry I did not see you had replied in my previous threat i apologise .

I have tried calculators and it's coming up between 6-8k and yes I have asked for negotiation and am waiting for a reply .

I have not gone down the formal route yet untill I have a reply .

So, 6-8k is for a 90 year extension and ground rent reduced to peppercorn (zero). This would give you a 165 year lease with no ground rent - virtually as good as freehold and certainly not a barrier to sale.

The negotiation goes something like ...
Freeholder - I want £15k to sell you freehold
You - I could get an extension via the formal route for 6-8k plus fees.
But I offer £9k plus your legal fees to buy freehold.

If Freeholder digs in just go for the extension via s42.

sibod2002

Thanks for your help

Does he flat Calculators roughly give you a guide for houses ?

6-8 k it says to extend .

I have just emailed them saying could I also discuss option to extend aswell

sibod2002

Anselld, I have just looked into extending and I am not sure if I qualify as I have read at the time of notice the ground rent must not exceed £250 and mine is £300

I am waiting for a response of the freeholders and then I will know wether I need to do the legal route

Thanks

economic

keep in mind the freeholder may ask for more (freehold worth more then lease extension) if there is development value at the property.

hazyjo

Are the previous owners now the freeholders? Just trying to get my head round why anyone would turn a house from FH to LH (and who would let them/agree it's a good idea).

Prob in the other thread which I've not seen...

Jx

sibod2002

Yes that's what they have done I have looked at the history of the property and it was freehold when they purchased it.