I’m the freeholder looking for information on extending the leasehold

UKwoman

My father’s the freeholder of a flat above a shop he owns. There is 37 years left of the lease. The flat owner has been in contact to extend the lease for a further 90 years with a purchase amount. Looking for some further information as all new to us.

- Do we have to instruct a solicitor to work on our behalf? Who would pay for this?

- How do we know the amount offered is a fair price?  Who can we contact to confirm this?

- Reading up on the internet we have to allow her to extend the lease?

Many thanks for this information, any further information or tips would be appreciated 

DullGreyGuy

They have two options:

Informal route, its a private negotiation between the pair of you on if you can or cannot come to an agreement.

Formal route, is a process set out in law with timescales etc. Assuming they've been there more than 2 years it's likely they have the option to go the formal route. 

In both cases it would normally be the one wanting the extension that pays the other party's costs. 

How much they'll have to pay after costs depends on the value of the property with a long lease and the ground rent payable each year, under 50years and its more subjective but there are some calculators online that will give you a rough estimate. 

youth_leader

I've just been through this with my elderly aunt, she has allowed her lease to drop to 74 years.

Your leaseholder, at this moment in time, should be paying your solicitor's fees.

If your leaseholder has issued you with a Section 42 you only have eight weeks to respond to their offer.

You might like this website - Leasehold Extension - Valuation - The Leasehold Advisory Service and this one Lease Extension Valuation - A Full Guide

eddddy

UKwoman said:

My father’s the freeholder of a flat above a shop he owns. There is 37 years left of the lease. The flat owner has been in contact to extend the lease for a further 90 years with a purchase amount. Looking for some further information as all new to us.

- Do we have to instruct a solicitor to work on our behalf? Who would pay for this?

- How do we know the amount offered is a fair price?  Who can we contact to confirm this?

- Reading up on the internet we have to allow her to extend the lease?

Many thanks for this information, any further information or tips would be appreciated 

If you have received a formal legal notice (called a section 42 notice), you need to instruct a specialist leasehold extension solicitor and leasehold valuer very quickly. As above, you have to give a formal legal reply within 2 months.

In that case, the law says the leaseholder (flat owner) will have to pay your solicitor's and valuer's fees.

If the leaseholder is following the formal legal route, you probably cannot stop them from getting a lease extension.




But if the leaseholder (flat owner) is asking you informally, there's less of a rush. You'll need to get the leaseholder to agree to pay your solicitor's and valuer's fees first.

With a 37 year lease, I would definitely use a solicitor and valuer. They will guide you through the process.

With the informal route, you can refuse to give a lease extension if you want.


The valuer will tell you the fair price for a lease extension.