Lease Extension

Landlord123

Hi,

I am trying to extend the lease on a flat that I let to tenants. 
I have paid already for the freeholders' valuation survey, they showed it to me and we agreed a price and were good to go.
However they dragged their heels, made errors in their draft lease extension documents and 2 years passed with still no lease extension and radio silence from the landlord.

I finally reached them again through my solicitor and the landlord has now insisted I pay for another valuation due to the amount of time that has passed since the initial valuation. I reluctantly paid for this and they are now not willing to share the valuation with me but have asked for a lease extension premium 60% higher than was previously agreed 2 years ago.

There are still well over 80 years remaining on the lease but I need to get it extended in order to sell.

Any advice?

eddddy

You could get your own valuation. That would tell you an idea of what the lease extension would cost if you went with the 'statutory route'.

You can use that valuation to negotiate, or just go for the statutory route.


(Bear in mind that the freeholder might just be messing you about at the moment, with no intention of agreeing to a lease extension.)

NameUnavailable

You should start a formal lease extension - sounds like you have tried to negotiate directly with the freeholder who can - and has - mess you around and ask what they want.

Elvispresley0

Probably not going to be the most popular poster here but here goes, 
I have a couple of freehold properties in London, 2 x 2 bed Maisonette's purpose built, both worth approx £350,000 each, I was approached last year by one of the leaseholders to extend her lease, ( we have had wars in the past due to her being a very stubborn woman) ie demolishing a front brick wall without asking, and we were living in the top property at the time with our small baby girl, we sold the property we had bought but still held the freehold, we offered her an extension at the time for £5,000 as there was approx 43 years left on the lease, she replied offering us £3,000 we really needed the money at the time, my wife said let’s take it, I said No, so last Xmas the leaseholder knocked at our door, and offered us £100,000 to extend, she has 13.5 years left now, I said No I want £200,000 it was just a figure I pulled out of the air as I was caught unaware and we really dint like each other, bearing in mind she stopped paying the pepper corn ground rent at £5.20 per annum for over 26 years, we recently got the past 6 years paid as that’s all we are entitled to, she said she was selling it to some Ukrainians for £100,000 I said I would give her £130,000 for the maisonette, she said she promised these people that they could have it as they had been good to her! She sold it in April this year, she purchased it with approx 45 years on the property, but she never lived in it, she has only ever rented it out, recently I was approached by an Acquistion company au called Castelnau in London, they offered me £130,000 for the freehold, I said No, they came back with another offer of £140,000 I again refused the offer, my question is what is the freehold worth? And I believe once the lease has gone to where it is now 13.5 years there is no marriage value left, that it would more or less cost the value of the property to extend the lease, £350,000 ? I of course I’ll probably refuse the offer they will submit as I’m sure it won’t be high enough, any advice ? Anyone else been in this position? And if I wanted to sell it where would I be better off selling it ? Auction? And what value? Thanks for reading ! 

Jonboy_1984

Given the money involved (and the likely hood of annoyed Ukrainians when they realise they have been stitched up like kippers with a worthless asset by their seller) probably best off paying the £500ish for a proper RICS surveyors expert opinion.