lease extension Lease Extension - How/£?

[Marc Barnes 0]

Hi, need some advice.

I own a 2 bedroom flat, with 94 years remaining on the lease. I have tentatively enquired to the freeholder to extend the lease and have been provided the attached document.

I have never done this before, but taking a quick look through the attached, it suggests that i have to pay/commit an amount of money/time/effort upfront to get to a position of knowing how much it will actually cost me to extend the lease?

.....and even then, it appears that i tell them what i think it should cost (based on a valuation report) and then the freeholder will decide if that sum is fair and whether or not to accept or negotiate my proposal?

*Is that about the sum of it?

*Does anyone have any experience of this? 

*Is their a calculation i can do beforehand to give me a rough idea of what it will cost?

*Should i be looking to extend with 94 years left?

*It states the lease extension would be for 90 years plus the unexpired term of the current lease - so would that make it a a 184 year lease (94 yrs unexpired plus the 90) if i do extend it?

Many Thanks

 

 

Lease Extension booklet.docx

[dennis hughes 60]

On 9/24/2019 at 12:42 PM, Marc said:

.....and even then, it appears that i tell them what i think it should cost (based on a valuation report) and then the freeholder will decide if that sum is fair and whether or not to accept or negotiate my proposal?

That's how I read that document.

YMMV

[conrad_paton 105]

Hi

Go to www.lease-advise.org it's a government funded website that packed with all the information you need.

They are impartial and transparent. They even have a lease extension calculator on their website.

Then...

Speak to a local property expert. Decent Estate Agent etc. And ask their opinion.

Personally I dont think a lease of 94 years needs extending, but if its something you feel strongly about, discuss the idea with your fellow leaseholders and either extend with other leaseholders at the same time (this may cut down on legal and other professional fees due to economies of scale) or buy the freehold yourselfs and/or self manage the block.

And yes..you'd end up with a lease of 94 years +90 years = 184 years left.

Hope this helps.

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[Marc Barnes 0]

Hi Conrad,

Very useful website  - thanks.

The reason for looking at extending now, was I 'thought' it would be cheaper to do it now, than say at sub 90yrs?

I plan on keeping the property long term, so what would be your view as to the most cost effective point in time (# of yrs left) to extend the lease?

Many Thanks

Marc

 

 

[N Holman 12]

Hi Marc, 

I bought a one bedroom ex council flat this year with a the lease remaining at 99 years. At the time the lease was a problem for me as I like you was looking long term @ 20 years so I would need to extend the lease at some stage. I ended up pull out of the sale because I couldn’t get an approximate figure and my research suggested that I would have to pay for both solicitors costs (mine and the landlords solicitors costs) plus the actual cost of extending the lease which may have to submit legal papers ? estimated £5-7k total maybe more... so pulled out. 

I did tell the agent/vendor that although I was still interested without a true estimate there was no way I could continue but did say that if the vendor could get a true estimate I may still be interested? 

I was speaking to a solicitor (friend) and he said that as it was an ex council flat It would be easier and possibly more straight forward to extend than if it was with a private landlord. 

So the vendor emailed the council and the council sent back a quote to extend the lease for just over £2k which the vendor agreed reduce the price by a further £1k and the sale was back on...

Please see attached....

For me I think the sooner the better as the longer you leave it the more it will cost you....

Neil