Extending a lease

N1_EP

Hello Everyone and Happy Christmas, 

Does anyone have recent experience of extending a lease in London.   My flat is Ex-Local Authority in North London - 2 beds. The lease is 88 years. 

I was selling it but it looks like the sale has fallen through and one of the reasons sited is due to the short lease.

I am thinking I should at least begin the lease extension process of extending the lease as the market has been bad over the last 6 months and I am thinking in fact I might just keep renting and try to sell again in a year or so. 

I am aware of the tenants reform bill but as I have tenants already in I think I can handle the 4 month notice period if I do decide to sell.

How long does the lease extension process take and is it very time consuming?  I have calculated the cost is likely £6.5k.

Flat is valued currently at £500k. Lease is 88 years. Ground Rent is £9. Location is N1. 

Thank you 

eddddy

N1_EP said:

How long does the lease extension process take and is it very time consuming? 

It can take usually take between 6 months and 18 months. 

It sounds like your freeholder is a local authority, so they probably won't 'play games' with you, so it might be closer to 6 months. (But on the other hand, some local authorities might be slow because of incompetence.)

In terms of being time consuming, most people hire a specialist valuer and specialist solicitor, and leave them to get on with it. You just have to instruct them and sign forms when required.

N1_EP said:

I have calculated the cost is likely £6.5k.

You will also have to pay your own legal / valuation costs and the freeholder's legal valuation costs.

That can often add up to around £4k - but again it's likely to be less if your freeholder is a local authority. They're likely to use their own in-house legal people.

Maybe the local authority will tell you in advance what legal / valuation fees they will charge (but they don't have to). And you can get quotes for your own valuer and solicitor fees.

N1_EP said:

I am thinking I should at least begin the lease extension process of extending the lease...

I'm not sure if this is what you mean - but if you start the process and then withdraw, you'll still have to pay the freeholder's and your legal / valuation fees, and wait a year before you can start again.

Or maybe you mean you'll find a buyer who is happy to finish the process off. That should work, if you can find somebody who is happy to take it on - and to pay the £6.5k plus fees, or whatever.

Tracet74

We have deal with Islington council on a regular basis acting for a leaseholder so more than happy to provide advice.  Feel free to ping me a message!