Considering Extending Lease - mainly due to ground rent concerns.

deejaybee

Hi,

Purpose built block where i live was constructed in 2003, with 130 year lease.

The ground rent increases every 10 years by cost of living, not sure if its RPI or CPI.

Currently its £117 every 6 months ( £234 per year ) . Its certain that it will go over the important £250 per year mark at next 10 year anniversary ( 2023 ).

So, i'm pondering whether its worth going down the statutory lease extension route, to add 90 years, and more importantly wipe out the ground rent.

We are not looking to move anytime soon, but feel the above will help to sell in future, and hopefully strengthen selling price,  - of course there are still the EWS issues, which may or may not drag on ( our building has no cladding, no balconies, and only 3 floors - ground, 1st and 2nd .  -  i realise there could be "internal" problems, firebreaks etc )

Advice appreciated

Ta

NameUnavailable

EWS1 under latest rules shouldn't apply to your block - I know that some lenders still ask for it though. I'm currently trying to buy a similar flat (3 storey/brick/no cladding or balconies) so am waiting to see what the lender says.......

As for the ground rent, if you are outside of London then yes it will be an issue if your GR goes above £250, so if you can afford a lease extension then it's probably worth doing (you need to have lived there for 2 years and you should go down the statutory route as informal offers tend to include GR from what I've seen, unless you can negotiate it out).

deejaybee

Thank you.

Yes its outside London, and been here 8 years now.

I'm hoping that over the next few years the EWS1 issues are gradually sorted out.

Would i need a specialist solicitor to go down the statutory route ?