Expiring Lease

mije1983

Rather than CAB, you need actual legal advice and start to find out how much the extension will cost. Make some enquiries with local firms as to how much they would charge.


The council are being generous offering a short lease extension with no cost bar legals etc. But in return, they will look to increase the ground rent significantly. Which is fair enough as they have to maximise their revenue streams, and probably have a duty to taxpayers to do that.

xylophone

It would be as well to sort out PoA so that you can deal with matters relating to the property on your mother's behalf.

https://www.gov.uk/power-of-attorney

Does your mother have the means to pay for either the lease extension or the purchase of the freehold?

If not, are you in the position to lend her the money?

Has your mother made a will?

Rather than CAB you need legal advice from a qualified conveyancing solicitor.

LiamNorthEast

I have the means as long as they don't exceed £6000, my mother is hopefully not checking out anytime soon, myloma can be controlled. Lease extension is what I want as buying freehold seems not doable at this stage.

I found a reply from The Leasehold Advisory Service where they say

"Under the Leasehold Reform Act 1967 you may be entitled to an extension of 50 years. There is no premium payable for a lease extension of a house granted under the Act, however, at the start of the new 50 year lease the ground rent may increase to a modern rent."

csgohan4

LiamNorthEast wrote: »

I have the means as long as they don't exceed £6000, my mother is hopefully not checking out anytime soon, myloma can be controlled. Lease extension is what I want as buying freehold seems not doable at this stage.

I found a reply from The Leasehold Advisory Service where they say

"Under the Leasehold Reform Act 1967 you may be entitled to an extension of 50 years. There is no premium payable for a lease extension of a house granted under the Act, however, at the start of the new 50 year lease the ground rent may increase to a modern rent."

I know you keep quoting this, but you need to contact the coouncil, but as your mother is the leaseholder they may refuse to speak to you, you need POA or get her to do it and start proceedings to extend the lease.

Do not expect it to be cheap, it will be in the 10's of thousands, quoting that does not mitigate the cost for you, the ground rent maybe quite expensive as well or may double every x years.

Your reassuring yourself on a false basis, until you get confirmation from the solicitors and council on how much this is going to cost, your just hoping it will cost cheap

mije1983

LiamNorthEast wrote: »

I found a reply from The Leasehold Advisory Service where they say

"Under the Leasehold Reform Act 1967 you may be entitled to an extension of 50 years. There is no premium payable for a lease extension of a house granted under the Act, however, at the start of the new 50 year lease the ground rent may increase to a modern rent."

Which is what the council have said. No premium but you will have to pay costs and the ground rent will significantly increase.

LiamNorthEast

"The extension would be for 50 years, however, the ground rent will be reviewed at the end of the current lease and after 25 years of the extension period and it will increase significantly."

Senior Surveyor
Property Portfolio and Markets Service
Civic Centre
Newcastle
NE1 8QH

I read that to mean the ground rent will increase significantly only after 25 years after the extension. Is that not the case?

csgohan4

LiamNorthEast wrote: »

"The extension would be for 50 years, however, the ground rent will be reviewed at the end of the current lease and after 25 years of the extension period and it will increase significantly."

Senior Surveyor
Property Portfolio and Markets Service
Civic Centre
Newcastle
NE1 8QH

I read that to mean the ground rent will increase significantly only after 25 years after the extension. Is that not the case?

increasing ground rent will also make it unmortageable depending on how much the uplift would be, the end of the lease will be when you renew it potentially

davidmcn

LiamNorthEast wrote: »

"The extension would be for 50 years, however, the ground rent will be reviewed at the end of the current lease and after 25 years of the extension period and it will increase significantly."

I read that to mean the ground rent will increase significantly only after 25 years after the extension. Is that not the case?

Let's try punctuating that differently:

"the ground rent will be reviewed:

1. at the end of the current lease [i.e. in 4 years time] and
2. after 25 years of the extension period

and it will increase significantly."

LiamNorthEast

Yes that dawned on me, it could be reviewed TWICE, I need clarification.

A ground rent increasing significantly could still be a manageable figure if the starting point is so very low (less than £2 a year)

THX for your help

da_rule

Is it a house then rather than a flat?