PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Lease Extension - Shared Ownership

stevepil
Posts: 17 Forumite

Hi All,
Desperately need some advice, we have recently moved into a shared ownership home and have 50% of the house, the other 50% is with the "charity" Guinness Homes!
The lease has 85 years left so we are keen to start extending this but we are lost on the process. We spoke with Guinness and they told us we could organise an RICS survey to calculate the premium, we are now told we cant and they will contact the surveyor but we need to pay £600 aswell as £350 admin fee, so immediately £1000 before even got a cost for the extension.
I am desperately trying to find out how much the premium will cost, and Guinness tell me they cant advise it is created by a RICS surveyor, I have tried to use online calculators but they all come back between £4000 - £9000 so a big variation.
I have a house 100% value is £380,000 (expensive area !!) and zero ground rent, with 85 years left on lease. Does anyone have any experience with Guinness around the premium, IE do they add more on the rate as they have told me already it is a take it or leave offer and not negotiable, and they wont allow me to do my own RICS survey, that to be is suspicuous and tells me they have preferred surveyors so they can charge more, maybe I am too cynical.
I am desperate to find someone who has experience of renewing with them and how much it really cost and in what scenario you were in, was it also close to what the websites say.
I had saved £6000 from the mortgage for the whole lease, and I am concerned that this may not be enough to even cover the premium let alone my legal fees etc, and then I am in a predicament with 85 years left that in a few more years the premium gets even worse with the marriage calculation.
I have heard the new legislation but no-one seems to know what it truly means, I contacted leasehold company today and they said they cant even advise how long it could be before this becomes law, potentially years and they also advised that they do not believe it goes for shared ownership owners either!!
Any advice would be appreciated please
THank you
Desperately need some advice, we have recently moved into a shared ownership home and have 50% of the house, the other 50% is with the "charity" Guinness Homes!
The lease has 85 years left so we are keen to start extending this but we are lost on the process. We spoke with Guinness and they told us we could organise an RICS survey to calculate the premium, we are now told we cant and they will contact the surveyor but we need to pay £600 aswell as £350 admin fee, so immediately £1000 before even got a cost for the extension.
I am desperately trying to find out how much the premium will cost, and Guinness tell me they cant advise it is created by a RICS surveyor, I have tried to use online calculators but they all come back between £4000 - £9000 so a big variation.
I have a house 100% value is £380,000 (expensive area !!) and zero ground rent, with 85 years left on lease. Does anyone have any experience with Guinness around the premium, IE do they add more on the rate as they have told me already it is a take it or leave offer and not negotiable, and they wont allow me to do my own RICS survey, that to be is suspicuous and tells me they have preferred surveyors so they can charge more, maybe I am too cynical.
I am desperate to find someone who has experience of renewing with them and how much it really cost and in what scenario you were in, was it also close to what the websites say.
I had saved £6000 from the mortgage for the whole lease, and I am concerned that this may not be enough to even cover the premium let alone my legal fees etc, and then I am in a predicament with 85 years left that in a few more years the premium gets even worse with the marriage calculation.
I have heard the new legislation but no-one seems to know what it truly means, I contacted leasehold company today and they said they cant even advise how long it could be before this becomes law, potentially years and they also advised that they do not believe it goes for shared ownership owners either!!
Any advice would be appreciated please
THank you
0
Comments
-
I'm in shared ownership, will be extending the lease later this year, currently at 84 years. My neighbour has recently done it and I'm budgeting £10k which includes the premium, my legal fees and the housing associations. Flat value around £170k.
There's nothing currently in the legislation that says it will apply to shared ownership; we can't even follow the statutory route now!
I asked a question on this a while ago and popped a screenshot of the HAs calculation in if you can find it so you can see the breakdown.Really should be doing some work...0 -
I will be in the same boat soon, I’m in the process of getting a shared ownership flat and the lease is at 82 years so will be extending asap but it’s almost impossible to get figures!0
-
This is the quote my neighbour recently received. The HA say they closely follow the statutory route (Not open to SO) then plus theirs and my legal fees.
I got some great advice on my thread.Really should be doing some work...0 -
Hi Steve. I find myself in the same boat as you did. I’m also with Guinness Trust and have a lease of 82 years remaining on my property that I have a 30% share in. This is all very daunting and so, so confusing. Did you manage to extend your lease and would you mind me asking how much it cost? Thank you. Bianca0
-
If anyone has ANY advice, it would be gratefully received. Thank you0
-
I appreciate this post is now old, but I found it after a spot of googling. Did anyone manage to give any advice here?
My daughter is currently considering purchasing a Shared Ownership maisonette with Guinness Homes, but the lease is only 81 years. We have tried to find out the cost of extending it - we can find the legal costs, but not the premium. Obviously this will have a huge impact on the affordability of the property, but with the government putting the new leasehold legislation through parliament today, we're not sure what to do. If we know the cost today, we could make that decision as to whether to go ahead, or wait. Thanks.0 -
spiteri said:I appreciate this post is now old, but I found it after a spot of googling. Did anyone manage to give any advice here?
My daughter is currently considering purchasing a Shared Ownership maisonette with Guinness Homes, but the lease is only 81 years. We have tried to find out the cost of extending it - we can find the legal costs, but not the premium. Obviously this will have a huge impact on the affordability of the property, but with the government putting the new leasehold legislation through parliament today, we're not sure what to do. If we know the cost today, we could make that decision as to whether to go ahead, or wait. Thanks.
Looking at their website, it sounds like the Guinness Trust use the 'statutory formula' for calculating the premium for lease extensions.
So you can use one of the online lease extension calculators to get a rough idea. The Guinness Trust recommend this one: https://www.lease-advice.org/calculator/
But, if for example, you're buying a 50% share - double check with Guinness Trust whether you pay 50% or 100% of the premium. (It's probably 100%).
See: https://www.guinnesspartnership.com/for-homeowners/moving-in/your-lease/
.. and click on: "How much will a lease extension cost?"
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.4K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.3K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards