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ellectrastar
Posts: 178 Forumite
I own a leasehold flat - bought as an investment (but obviously not a great one) and advised by an IFA that I now know to be a complete shyster. ANYWAY! The lease on it is down to 71 years remaining. I wouldn't mind selling the flat now the prices have come back up to around what I bought it for and investing in something better. Another flat is up for sale at the moment and it notes that a 90-year extension is in the process of being added.
I have researched a bit and found that as a leaseholder for more than two years, and after the Leasehold Reform Housing and Urban Development Act 1993, I have a right to add 90 years to the lease, but obviously in exchange for some payment. Because the lease has dropped below 80 years (not hard when it was only 99 to start with :mad:) the calculator tells me I'm going to have to pay roughly 10k including costs. This could still get me my money back and free me from the thing completely, or alternatively I could keep it for longer knowing I will always have the longer lease.
So, I have the deeds etc and can see the names of the three freeholders. I think maybe one has passed away, possibly two of them. The last one I can find details for under a company name, the company (or some form of it as it has changed over the years) that I think built the block of flats. I have a template enquiry letter - is this where I would send it? Or would I contact my mortgage provider and they confirm where I'd need to send it? I'm just not too sure where this letter should go, or whether there's a simple way of finding out.
Many thanks in advance as always.
I have researched a bit and found that as a leaseholder for more than two years, and after the Leasehold Reform Housing and Urban Development Act 1993, I have a right to add 90 years to the lease, but obviously in exchange for some payment. Because the lease has dropped below 80 years (not hard when it was only 99 to start with :mad:) the calculator tells me I'm going to have to pay roughly 10k including costs. This could still get me my money back and free me from the thing completely, or alternatively I could keep it for longer knowing I will always have the longer lease.
So, I have the deeds etc and can see the names of the three freeholders. I think maybe one has passed away, possibly two of them. The last one I can find details for under a company name, the company (or some form of it as it has changed over the years) that I think built the block of flats. I have a template enquiry letter - is this where I would send it? Or would I contact my mortgage provider and they confirm where I'd need to send it? I'm just not too sure where this letter should go, or whether there's a simple way of finding out.
Many thanks in advance as always.
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Comments
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If the other flat is in the same block I think I'd be contacting the owner of that one to ask what they had done and get an idea of costs etc.
The shorter the lease gets, the more it'll cost to extend, so if you have the cash it'd be a good idea to get it sorted, though keep an eye on the lease stipulations if you do it by negotiation rather than statutory route.0 -
Who do you pay ground rent & any service/maintenance charge to? If it's an agent then you would initially direct your enquiry to them & they would contact the freeholder on your behalf.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
ellectrastar wrote: »So, I have the deeds etc and can see the names of the three freeholders. I think maybe one has passed away, possibly two of them. The last one I can find details for under a company name, the company (or some form of it as it has changed over the years) that I think built the block of flats.
I have a template enquiry letter - is this where I would send it?
Are you sure that you are looking at the names of the current freeholder - as opposed to the freeholder when the lease on your flat was granted?
A good place to look for the name of your freeholder is on your ground rent / service charge demands.
The law says that the freeholder must (usually) put their name and address on there.
You can approach your freeholder about an 'informal' lease extension.
But if you want a 'statutory' lease extension (as you mention the Leasehold Reform Housing and Urban Development Act), you don't need to approach your freeholder. You would instruct a valuer and solicitor.
See: https://www.lease-advice.org/article/lease-extension-of-leasehold-flats-the-two-routes/0 -
It might be worth checking the Land Registry to see if the freehold title for your block is registered. If it is, it costs £3 to get a copy of the title.0
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