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    • newleaseholder
    • By newleaseholder 20th Jan 18, 8:29 AM
    • 8Posts
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    newleaseholder
    Leasehold extension help/suggestion
    • #1
    • 20th Jan 18, 8:29 AM
    Leasehold extension help/suggestion 20th Jan 18 at 8:29 AM
    In May (few more months, but not too far!) I will be eligible to formally extend the lease on my flat and I am hoping someone has some insight about it. I have read few pages from lease-advice org to get an idea though some practical advice is appreciated.

    The flat is in a converted house with 2 flats in total, should I approach the other owner and see whether they also need to extend or just go solo? I don't think I want to buy the freehold as the lease is fairly relaxed with no GR and SC basically left to us to organise.

    Solicitors, does it matter if local or online? Is it better to have a fixed fee or? There will be 65 years left on the lease, I know that extending will be costly with marriage value though it was a calculated decision!
    Thanks
Page 1
    • lotteryman
    • By lotteryman 20th Jan 18, 8:47 AM
    • 47 Posts
    • 39 Thanks
    lotteryman
    • #2
    • 20th Jan 18, 8:47 AM
    • #2
    • 20th Jan 18, 8:47 AM
    I'm starting the same process so will follow this thread with interest.
    Given your situation I would go for the freehold as there shouldn't be a lot of difference in cost but it then gives you complete control (the current freeholder could sell it on and this could cause issues later i.e. there could be variations made to the lease).
    It will be better if both leaseholders decide to work together on it.

    If you just go for the lease I would try to do it informally at first i.e. write to the freeholder with a reasonable offer (as you don't pay GR the cost shouldn't be too bad unless you live in a really expensive area) and you can get an idea by using the calculator on the site you've found and there is also one on this site. I tried an informal approach but the freeholder wanted an 'official' approach
    If the freeholder is awkward you may have to go down the Section 42 route which is a more formal route. This will increase the cost as you will then need to pay for a proper valuation (probably c200)
    Obviously you will need to use a solicitor at some point but if you have an agreement already the cost and process will be easier. Most solicitors can do the work but often it is better to use a specialist solicitor.
    Don't forget that you will also have to pay the freeholder's costs so the total cost could be in c3-4k
    • eddddy
    • By eddddy 20th Jan 18, 9:07 AM
    • 6,329 Posts
    • 6,185 Thanks
    eddddy
    • #3
    • 20th Jan 18, 9:07 AM
    • #3
    • 20th Jan 18, 9:07 AM
    If the freeholder is awkward you may have to go down the Section 42 route which is a more formal route. This will increase the cost as you will then need to pay for a proper valuation (probably c200)
    Originally posted by lotteryman
    Good advice - but you must be in a very low cost area for valuations to be that cheap.

    In southern England valuations typically cost 600+, and serving a s42 notice costs another 600+

    This firm list some ideas of lease extension costs on their website. It might be a useful guide (scroll down on this page) : https://www.samconveyancing.co.uk/news/conveyancing/lease-extension-cost-361

    (This is absolutely not a recommendation to use this firm. I don't know them and I've never used them.)
    • newleaseholder
    • By newleaseholder 20th Jan 18, 9:14 AM
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    newleaseholder
    • #4
    • 20th Jan 18, 9:14 AM
    • #4
    • 20th Jan 18, 9:14 AM
    Thanks eddddy I am in SE England / London commuter belt so I expect prices to be a bit higher.
    I think when I did the RICS survey it was around 350 or so.

    Few years ago the freeholder informally offered the extension for 10k though with onerous GR which I would not go for. I expect my extension to be around 13k + costs which is fine (I initially budgeted 20k).

    Ideally I would like to hand all papers to solicitors and let them run with it really and then just wait for the process to eventually complete (it may take 12 months, no rush) and have an extended lease with no GR.

    I do have GR of 1 today (I am fine with that), though I paid the first year, I have read that I don't have to pay unless the Freeholder makes a request for it? Do you know if that is correct? I would be 1 in arrears!
    • eddddy
    • By eddddy 20th Jan 18, 9:41 AM
    • 6,329 Posts
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    eddddy
    • #5
    • 20th Jan 18, 9:41 AM
    • #5
    • 20th Jan 18, 9:41 AM
    I do have GR of 1 today (I am fine with that), though I paid the first year, I have read that I don't have to pay unless the Freeholder makes a request for it? Do you know if that is correct? I would be 1 in arrears!
    Originally posted by newleaseholder
    Yep - you don't have to pay the GR, unless/until it is correctly demanded.
    See: https://www.lease-advice.org/article/ground-rent-a-demanding-notice/
    • lotteryman
    • By lotteryman 20th Jan 18, 11:06 AM
    • 47 Posts
    • 39 Thanks
    lotteryman
    • #6
    • 20th Jan 18, 11:06 AM
    • #6
    • 20th Jan 18, 11:06 AM
    Going back to my point earlier ... seriously think about buying the freehold, look at the cost in comparison with buying an extended lease. Having the freehold or a share of it (with the other flat leaseholder) will make a big difference to the value of the flat and your ability to sell it at a later date.


    Given that the current freeholder doesn't get any GR or SC they may be glad of getting rid of the freehold they certainly don't seem to be getting much financially from it at the moment. Chances are they only kept the freehold to be able to manage the two flats more effectively.

    If he offered you the extension a few years ago for 10k you should weigh up how much the legal stuff will cost. I would approach him informally and ask him what he wants for the leasehold/freehold - it doesn't exclude the legal route if needs be.
    Last edited by lotteryman; 20-01-2018 at 11:13 AM.
    • lotteryman
    • By lotteryman 20th Jan 18, 11:18 AM
    • 47 Posts
    • 39 Thanks
    lotteryman
    • #7
    • 20th Jan 18, 11:18 AM
    Legal cost
    • #7
    • 20th Jan 18, 11:18 AM
    Good advice - but you must be in a very low cost area for valuations to be that cheap.

    In southern England valuations typically cost 600+, and serving a s42 notice costs another 600+

    This firm list some ideas of lease extension costs on their website. It might be a useful guide (scroll down on this page) : https://www.samconveyancing.co.uk/news/conveyancing/lease-extension-cost-361

    (This is absolutely not a recommendation to use this firm. I don't know them and I've never used them.)
    Originally posted by eddddy
    Yeah, the south is expensive. I'm in the Midlands and 200 was probably a bit low for such an valuation.
    The solicitor I'm using though (and I've used them several times) has 4 branches in the UK and has quoted me just over 1k for the lease extension work.
    • newleaseholder
    • By newleaseholder 11th Apr 18, 3:33 PM
    • 8 Posts
    • 0 Thanks
    newleaseholder
    • #8
    • 11th Apr 18, 3:33 PM
    • #8
    • 11th Apr 18, 3:33 PM
    Time for me to start looking at solicitors to extend the lease.
    Is there anything in particular I should ask the solicitors when selecting them and when they quote?
    Like First Tier Tribunal, etc?
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