Leasehold extension... first steps advice please

taf_2

I have 76 yrs left on my flat's lease and I want to extend it now. I've owned it for 3 yrs and I can't think of any reasons within the new legislation why I can't do it.

I'm not sure what is the best first step. Is it best to ask the freeholder/landlord informally for what they would consider an appropriate payment or should I go straight to my solicitor and get a surveyor in to do a valuation instead...

Is there any harm in asking the freeholder first and is there such a thing as an informal request? Am I obliged to proceed with the application if I send them an 'informal' request...

Any advice would be very much appreciated.

Thanks
taf

nrsql

I am going through exactly this.
I wrote to the freeholder and they came back with an offer to extend to 99 years with an increased ground rent that escalated every 25 years.

The law says that the lease can be extended by 90 years (or 99?) and that they cannot charge ground rent (peppercorn probably).
I got a valuation and served the notice with an offer and the freeholder came back with an offer exactly double mine. Will have to be negotiated further.
You will be liable for their legal fees too if you go through this process so need an estimate after serving the notice.

Doozergirl

It might be worth asking for a price to buy the freehold as well, if they will sell, as well one to extend.

hopefulfooluk

When I recently sold my flat, my buyer asked if the lease could be extended. My solicitor asked the freeholder how much it would be and they came back with a price, £1200 for another 99 years, or £1450 for 125 years. Purchase price of flat was £44k in 2000 and I sold it for £92k. I don't know if that's any help but it might help you gauge whether your freeholder was taking the proverbial with their offer.

taf_2

thanks all.

nrsql, good luck with the negotiations - sounds like they were taking the mickey when you enquired the first time which is what I want to avoid. I think I might write to them anyway and see what happens.

Doozergirl, yeah i've considered this but my understanding is that you need a certain percentage of the leaseholders to join forces (75%?) to be able to buy a share of the freehold... I'm going to contact my residents' association to ask if they've had any discussions about this before.

greenwich

You might find this helpful: http://www.lease-advice.org/legsmain.htm