Lease extension

MaryNB

ElieseKM said:

This the advice the current seller got, not sure about some of the terms such as the ground rent doubling:

I would have to take our Client’s instructions but would be prepared to recommend them to enter into a Deed of Variation, or a new Lease, so as to extend the existing Lease to create a new 125 year Lease from a current date on the following terms:-

1. Payment of a capital consideration of £17,000.

2. An increase in the ground rent to £250 per annum doubling at 25 year intervals.

3. Payment of our fees in the matter in the sum of £650 plus VAT, payable whether the matter proceeds to completion or not.

4. Payment of our Client’s legal costs, payable whether the matter proceeds to completion or not.

5. Inclusion in the Deed of Variation other matters of a relatively minor nature so as to modernise the Lease as considered appropriate by our Client’s Solicitors. It is anticipated that this would cover for updating the fee for Notices, providing for payment of Landlord’s costs in respect of breaches of covenant and interest on arrears of rent.

In your case (a non-statutory extension), the freeholder can charge whatever they like.
To check if it is reasonable, see how much it would cost to extend it by 90 years via the statutory route. 
https://www.falbros.com/calculators/lease-extension/

Jatinder34

ElieseKM said:

I am in the process of buying a property with a low lease. The seller has obtained a price for extension from the freeholder, is there anyway I can get this price guaranteed as part of the sale? Ie written into legals or is there another channel 

Yes you can confirm that the price is accurate by getting a general estimate of your lease extension cost by calculating it through a free lease extension cost calculator provided by Professional Leasehold Valuation Surveyors in UK.