Lease extension cost doubled to £10K - advice please...

freebird65

....and if this is in the wrong place, please point me in the right direction.

I'm trying to extend the lease on my flat (currently 63 years remaining) and have always been quoted £5K for this. I've now saved the money, but have been informed that because someone went to the LVT and subsequently lost their challenge as the extension cost was apparently low, the freeholder has now doubled this to £10K. They are offering to extend the term back to 99 years and up the current £2 pa ground rent to £100 pa.

My solicitor says that this is outrageous and I should consider going to the LVT. Trouble is, I can just about borrow enough to cover the £10K - what happens if I lose the case and they put it up even higher??

Any advice would be appreciated!

SquatNow

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SquatNow wrote: »

Welcome to Fuedal Britain.

Sadly yes!!!!!!!!:mad:

cattie

You can estimate the market cost of extending your lease, taking into account the very important marriage value as the lease has less than 80yrs, remaining here.http://www.tenancy-agreements.co.uk/lease.php

For comprehensive help & info on owning leasehold property, including lease extensions & buying freeholds go here http://www.lease-advice.org/newintro.htm It's a government funded advice agency & the site explains more about marriage value & it's implications on the price when trying to extend the lease.

freebird65

I've already done a little reading so have a vague grasp of "marriage values". So, basically, if I work out that the difference is higher or about the same as I'm being quoted then I should just grit my teeth and deal with it and not bother going to the LVT?

The solicitor also suggested getting a surveyor in - is it worth doing this or should I go by the info you've given me?

I'm not hoping for a magic solution that will give me the extension for £5K (I can't see that happening) - I just want to make sure I'm as fully informed as possible and if that info as well as a surveyors report is a good plan, then I'll do it.

Knowing my luck, the mgt company will announce they're buying the freehold a month after I've finalised the extension. I have asked them and they say there are no plans to do so. :rolleyes:

cattie

If you work out the rough cost of the lease extension from the first site in my post & it's in the region of what the freeholder is quoting you, then it would be pretty pointless going to the LVT as the costs of extending a lease are worked out on a particular formulae.

If there is a big discrepancy in the figure freeholder had quoted & estimated figure on website then yes I'd say think about getting the LVT to set the price.

Would paying £10,000 for the extended lease increase your flat by at least that value?

cuthbert_the_octopus

I would just pay it to be honest.


Last year we were in the same position as you, the freeholder quoted us £10k (+their legal costs), and we were disgusted by it.

This year we decided to sell, so needed to extend the lease, so went down the legal route surveyor, marriage values etc etc, as we thought last years value was too high and they came back to a figure of £18-21k. And that we should offer this as a further offer, we went down this route to try and get the number reduced, not so a surveyor could tell us it was worth more!

So, on the off chance we went back to the freeholder, just to see what they would offer us, this year it was £15k, which we negiotated down to £12.5k + costs.

Which is still alot of money for a piece of paper so you can sell your flat!
We had to extend the mortgage to cover this, legal fees were also alot on both sides, so all in all i think it cost us just over £15k. I think the bank even charged us for something or the other (when you would have thought that it would have been in their best interests!)

I would also make sure that your solicitor has handled a lease extension before, ours hadnt, and it took 3-4months to go through, all the time we were unable to sell the flat. (Has all fallen thru' now, so nevermind)

Cuthby

freebird65

I don't know what effect the lease would have on the value of the flat, but will check with local agents. I suspect it would be better to get it done as that is the first question the agents ask about these flats.

I've been using my solicitor for years and she's fab at all things property - oh well....fingers crossed and if by some miracle I get it for a lot less, I'll let you know.

Thanks