Statutory Lease Extension Costs

PauloF91

Hi all, I'm in the final stage of buying a leashold flat with a doubling clause on the ground rent.

I recently came across the Statutory Lease Extension which is a formal extensions that adds another 90 years to the lease and gets rid of any ground rent.

I believe this is worth doing for the right price, so I'd like to know if anyone has ever applied for it or if they know how is the cost roughly calculated?

I've got around 110 years on the lease, there's no rush extending it, I just want to have all the facts before buying the flat.

Many thanks.

Tom99

Have a read here:
https://www.lease-advice.org/advice-guide/lease-extension-getting-started/
And a go at a calculator here:
https://www.freeholdcalculator.com/leasehold_extension.php
What is the ground rent and how frequently does it double?
The online calculators will only value a fixed ground rent, one which increases will obviously cost more to buy out.

You will have to wait 2yrs after you buy to do a statutory lease extension or if you have not already exchanged contracts and the seller has owned for 2yrs you can ask the seller to serve a Section 42 Notice which you take over.

PauloF91

This is great. Thanks. However it does seem quite cheap to be fair for a 90 year extension. Estimated cost from that Calculator is approximately $4k which is usually the cost for a 25y lease extension, not 90, which is good.

My Ground Rent is currently at £200 and it'll double every 20 years (it'll double for the first time in 5 years time as it's 15 years old). Weird thing is, when I mentioned this to my solicitor she wasn't aware at all that I'd be exempt from paying any Ground Rent.

This is now off topic but another issue is, once the Ground Rent becomes more than £250 (outside london), if I ever miss a Ground Rent payment, I heard the landlord can potentially end my lease and take my flat without telling anyone. Is this a thing?

Many thanks for your help!

Fire_Fox

Welcome to MSE.

Spend some quality time with the LEASE website already linked to, covers virtually all the bases.

Tom99

PauloF91 wrote: »

This is great. Thanks. However it does seem quite cheap to be fair for a 90 year extension. Estimated cost from that Calculator is approximately £4k which is usually the cost for a 25y lease extension, not 90, which is good.

My Ground Rent is currently at £200 and it'll double every 20 years (it'll double for the first time in 5 years time as it's 15 years old). Weird thing is, when I mentioned this to my solicitor she wasn't aware at all that I'd be exempt from paying any Ground Rent.

This is now off topic but another issue is, once the Ground Rent becomes more than £250 (outside london), if I ever miss a Ground Rent payment, I heard the landlord can potentially end my lease and take my flat without telling anyone. Is this a thing?

Many thanks for your help!

The calculator does not take into account the increase in ground rent. It will be more like double that figure plus both sides fees.