lease valuations

wdpch

Hi All, I just got my lease valuation done on my flat, I own a share of Freehold, owners of flat downstairs own the other half of the freehold.
They have exactly the same lease as me and need to extend it as it is a leasehold property. They caused problems during the purchase of the freehold which in the end took 2 years 8 months.
They are a problem as they feel that every one has to wait for them, so I've decided to serve a section 42 notice on them hence why I have had my property valued by a surveyor.
They have very recently had a drop kerb and parking for 2 cars done in the front garden, am I right in thinking that this would increase the value of their lease? And if the value difference between my flat and theirs is £10, 000 would this make a difference when they want to extend the lease by 90 years?

eddddy

wdpch wrote: »

They have very recently had a drop kerb and parking for 2 cars done in the front garden, am I right in thinking that this would increase the value of their lease? And if the value difference between my flat and theirs is £10, 000 would this make a difference when they want to extend the lease by 90 years?

The valuation should be based on the property as it was when the lease was originally granted.

i.e. in this case it would be valued as though it had no dropped kerb and parking spaces.

So the valuation for lease extension purposes is likely to be less than the current market value.

Similarly, if central heating, double glazing, en-suite bathroom etc has been added to the property since the lease was granted, it would be valued as though none of these existed in the property.

G_M

wdpch wrote: »

They have very recently had a drop kerb and parking for 2 cars done in the front garden, am I right in thinking that this would increase the value of their lease? And if the value difference between my flat and theirs is £10, 000 would this make a difference when they want to extend the lease by 90 years?

Does the front garden fall withing the boundary of their lease?

Is there anything in (either) lease about the front garden (eg not to pave over it etc)?

Did they require, and if yes obtain, planning permission for change of use?

Did they put in the drop kerb with the consent of the Highways Dept (or just pay a cowboy to do the work)?

Have they complied with Building Regulations so far as the new covering of the front garden (often must be made of a permeable material)?

eddddy

... On a more general level, presumably you realise that joint freeholders often just agree to extend everyone's lease for free.

It saves everyone paying valuation fees, legal fees etc.

G_M

eddddy wrote: »

... On a more general level, presumably you realise that joint freeholders often just agree to extend everyone's lease for free.

It saves everyone paying valuation fees, legal fees etc.

But given the poor relationship, make sure that if you agree to a free extension of the neighbour's lease, you either extend your own, free, at the same time, or obtain a legally binding agreement that no charge will be made if/when you wish to extend.

wdpch

When we bought the freehold, it said no difference on the leases because they didn't have a drop kerb in place but had a single driveway.
The council done the dropkerb.
They didn't have planning permission, and no I don't believe its up to standard, I did report them to the council as they were doing it , haven't heard back from council.
My solicitors contacted them 4 months ago about extending the leases , they took a month to get back to the solicitors saying they couldn't decide how long to extend the lease for (999 years makes sense to me ) I said I would agree as long as it was all completed within 28 days, haven't heard nothing since , that was 3 weeks ago

anselld

wdpch wrote: »

The council done the dropkerb.
They didn't have planning permission, and no I don't believe its up to standard, I did report them to the council as they were doing it , haven't heard back from council.

So you have reported the Council to itself for installing a substandard drop kerb without planning permission? ...

... and you have served s42 notice on yourself as joint Freeholder?

Are you sure "they" are the problem?

Surely it would be in everyone's best interest to sit down and agree that both leases are extended and the legal fees are split 50:50.

Debates about values, drop kerbs and parking are entirely irrelevant to lease extension.

wdpch

No I repoted owner of flat for not having planning permission for the parking surface ( just checked planning control and there is still no planning permission).
There is restricted parking in our road and apparently council are going to introduce residents parking scheme cost £120 per annum.
Until they agree to lease extension and even if they do agree they could pull out at any time without any problems according to my solicitors, that's why I am going down the route of serving the section 42 Notice

G_M

This is all crazy!

I repoted owner of flat for not having planning permission for the parking surface

1) are you sure PP is required?
2) have you checked building Regs?

I said I would agree as long as it was all completed within 28 days,

Why the artificial deadline? These thngs often take time - surely the critical factor is that you each get the same benefit, not how long it takes?

They have exactly the same lease as me and need to extend it

Yet another reason to forget the deadline. Since it is they that wants to extend, not you, why do you care how long it takes?

I just got my lease valuation done on my flat,

they couldn't decide how long to extend the lease for (999 years makes sense to me )

Your valuation is pointless. as others have suggested, just get agreement to extend both leases to 999 years, at no cost to either of you apart from the legal fees (which you could probobly get your neighbour to pay since he seems to be the one wanting to extend).

anselld

G_M wrote: »

Since it is they that wants to extend, not you, why do you care how long it takes?

I am not sure that is the case. The OP states they have served s42 notice to ensure there is no delay in extension. s42 is served by the Tenant (Leaseholder) hence it must surely be the OP who wishes to extend without delay.

G_M

anselld wrote: »

I am not sure that is the case. The OP states they have served s42 notice to ensure there is no delay in extension. s42 is served by the Tenant (Leaseholder) hence it must surely be the OP who wishes to extend without delay.

Possible. But OP said:

They have exactly the same lease as me and need to extend it as it is a leasehold property.

The S42 may be some inexplicable action taken by the OP - given that he appears to have limited understanding and is possibly prone to irrational action.