Lease Extension

Skippy13

We contacted the solicitors and explained what we wanted to do and were directed to her. Apparently she!!!8217;s done many lease extensions, including ones involving our freeholder so we felt quite confident.

Tom99

99 year lease and a increased ground rent she did not tell you about. It does not sound as if she is working very hard on your behalf.

Skippy13

Update - the money is now invested in premium bonds and the lease extension is on hold as we can’t agree terms.

The conveyancer was under the impression from the freeholder’s solicitor that we were aware of the change to the ground rent and that we had agreed to it. She has now written to inform them that we don’t accept the terms and we’re now waiting for their response. If they won’t budge we will look into going down the statutory route, depending on costs.

As it stands at the moment we have a property that we can’t sell due to a short lease. What we don’t want to do is pay a fortune for the lease and find we still can’t sell because of the ground rent. Nationwide has a 0.1% of groundrent bar, and at £250 pa we would be very close or possibly over that.

Tom99

Skippy13 wrote: »

Update - the money is now invested in premium bonds and the lease extension is on hold as we can!!!8217;t agree terms.

The conveyancer was under the impression from the freeholder!!!8217;s solicitor that we were aware of the change to the ground rent and that we had agreed to it. She has now written to inform them that we don!!!8217;t accept the terms and we!!!8217;re now waiting for their response. If they won!!!8217;t budge we will look into going down the statutory route, depending on costs.

As it stands at the moment we have a property that we can!!!8217;t sell due to a short lease. What we don!!!8217;t want to do is pay a fortune for the lease and find we still can!!!8217;t sell because of the ground rent. Nationwide has a 0.1% of groundrent bar, and at £250 pa we would be very close or possibly over that.

[FONT=Verdana, sans-serif]You have done the right thing for now but I do not think you should be trying to conduct negotiations via the conveyancer they do not have valuation expertise and all they seem to be doing on your behalf is asking the freeholder what their offer is.

[/FONT] [FONT=Verdana, sans-serif]It would be better for you to appoint your own RICS surveyor now who would be able to advice you on both the statutory and non statutory options and values. That way you will get the best deal possible.

That might cost you £500 but will be worth it.
[/FONT]

Skippy13

Would we need to pull out of the informal negotiations to do that? We've started looking to find a surveyor so that'll be something to sort out after Easter.

My big worry is that the costs will go over what we can afford as, if that happens, we'll have to pull out completely.

Thanks for your advice, it's much appreciated.

Tom99

Skippy13 wrote: »

Would we need to pull out of the informal negotiations to do that? We've started looking to find a surveyor so that'll be something to sort out after Easter.

My big worry is that the costs will go over what we can afford as, if that happens, we'll have to pull out completely.

Thanks for your advice, it's much appreciated.

[FONT=Verdana, sans-serif]No you don't have to pull out, just park whatever reply your conveyancer has until you have your surveyors advice.[/FONT]

Skippy13

Great, thank you.

Tom99

[FONT=Verdana, sans-serif]Your surveyor will be experienced in both valuation and negotiation so able to advice you on the best way forward.

[/FONT] [FONT=Verdana, sans-serif]For example if a statutory extension is within your budget would it be best to serve a section 42 notice but indicate you are willing to also negotiate informally alongside.

[/FONT] [FONT=Verdana, sans-serif]That way the freeholder might sharpen their pencil and come up with their best offer sooner rather than drag out the informal negotiations whilst your lease gets shorter and the premium higher.[/FONT]

Skippy13

Sorry, I have another question. The property is in my husband!!!8217;s name as I was bankrupt when we moved so there was no way I could be on the mortgage. The mortgage has been cleared now and we want to put the property into joint names. Can we do that without amending the lease? We know we!!!8217;ve got to exend and the price is going up, but for various reasons (work, health) we are going to have to leave it a few months but still want the property in joint names.

I should add we aren!!!8217;t planning on moving, there!!!8217;s no way we could afford to stay in this area if we did.

Thanks again.

Tom99

Skippy13 wrote: »

Sorry, I have another question. The property is in my husbands name as I was bankrupt when we moved so there was no way I could be on the mortgage. The mortgage has been cleared now and we want to put the property into joint names. Can we do that without amending the lease? We know weve got to exend and the price is going up, but for various reasons (work, health) we are going to have to leave it a few months but still want the property in joint names.

I should add we arent planning on moving, theres no way we could afford to stay in this area if we did.

Thanks again.

[FONT=Verdana, sans-serif]You will be doing a partial transfer of husbands leasehold title.

[/FONT] [FONT=Verdana, sans-serif]If you go the informal lease extension route I can't see that being a problem

[/FONT] [FONT=Verdana, sans-serif]But if you go the statutory route you will not have been an owner for 2 years so may not qualify for a statutory extension.

[/FONT] [FONT=Verdana, sans-serif]I think you need expert advice on that before you transfer the property into your joint names.[/FONT]