Extending a lease from a freeholder's perspective.

[Binney on acid]

I own 2 of the 4 flats and the freehold in a purpose built 1980's block. I don't exploit the situation financially and would be stitching myself up if I did, as owning two flats, I pay 50% of the maintenance charges per month for the block. They are kept to an absolute minimum and are split 4 ways. The other two owners of the leasehold flats want to extend their leases from the 68 years that they have to run. Anyone know where I stand here? The last thing I want to do is to incur solicitors fees, end up with loads of hassle, only to add value to their properties, especially as owning the freehold only generates £300 per annum, which is obviously taxable and is a lot more trouble than it's worth.

All of my money is in the flats. I have absolutely no liquidity and this is my one opportunity to get some. I don't want to exploit anyone, but have no intention of subsidising the leaseholders more than I am at present. Am I expected to pay 1/3 of solicitor's fees? Can I choose a solicitor to handle this on behalf of all three of us? I would really appreciate some constructive advice. I don't have a solicitor. Could someone recommend one that would ensure that my interests are protected, without milking me?

 

[Vegas Seagull]

Offer 100 years addition @ £10k each & 1/3 cost each (payable when resolved otherwise 1/2 each to them if they withdraw)

 

[Triggaaar]

Do the other leaseholders live in their flats? (EDIT - I see that doesn't matter any more)

Start by using an online calculator to find out how much the leaseholders should expect to pay to extend the lease. Unless things have changed, they will have to pay for all the solicitor costs.

http://www.lease-advice.org/calculator/

 

[Triggaaar]

Do not do this.

Offer 100 years addition @ £10k each & 1/3 cost each (payable when resolved otherwise 1/2 each to them if they withdraw)

 

[HantsSeagull]

I have bought the share of freehold before - which is a bit different but not much.

you can get them to pay the legal costs - yours and their costs - after all its them that wants to do it.

you should get a valuer to assess what a lease extension is worth and then tell them how much its going to cost them.

this is all good news for you!

try gemma Hewitt at Crosby Woods in Hove - you should have a different solicitor to them.

 

[Wondergull]

I am in the process of selling my 3 bed flat and we are extending the lease on completion as it only has 80 years left. I believe they call this the marriage limit and once a lease drops bow this level it becomes virtually impossible to sell and more expensive to extend. We are extending the lease back to 125 years at a cost of £16,500 and we are liable for all legal costs, both ours and the freeholders. To be fair, the freeholder has amended a previous deed of variation and is representing himself to avoid any legal costs on his behalf.

 

[Triggaaar]

I am in the process of selling my 3 bed flat and we are extending the lease on completion as it only has 80 years left. I believe they call this the marriage limit and once a lease drops bow this level it becomes virtually impossible to sell and more expensive to extend. We are extending the lease back to 125 years at a cost of £16,500 and we are liable for all legal costs, both ours and the freeholders. To be fair, the freeholder has amended a previous deed of variation and is representing himself to avoid any legal costs on his behalf.

£16,500 for just the extension sounds too much for a flat with 80 years remaining. Who came up with that figure?

 

[Wondergull]

£16,500 for just the extension sounds too much for a flat with 80 years remaining. Who came up with that figure?

The freeholder but we have taken independent advice and they have all said its a reasonable figure. The flat is in London so perhaps that adds to the cost?

 

[Triggaaar]

The freeholder but we have taken independent advice and they have all said its a reasonable figure. The flat is in London so perhaps that adds to the cost?

Well if your independent advice says it's reasonable, I guess it must be. It's the value that would add to the cost (unless prime central London, according to the calculator). Type the figures in on the calculator and see if it's right, will take just a few seconds:

http://www.lease-advice.org/calculator/

It might be useful for the OP to know how close your figure is to that of the calculator. If yours is either the top of the estimate, or x% over, the OP can apply the same logic and offer the deal to the leaseholders.

 

[Wondergull]

So I have nervously added my details and it has given a range of £19,000 to £23,000 plus costs

 

[Triggaaar]

So I have nervously added my details and it has given a range of £19,000 to £23,000 plus costs

So either you're paying huge ground rent, or your 3 bed flat is worth a fortune

 

[samtheseagull]

It cost me 10k plus costs(3k) to extend my lease from 68 to 158 years(90 added) they value the flat on its original state(about 125k) the person wanting to extend the lease pays the freeholders fees and leaseholders.

 

[Binney on acid]

Thanks a lot for the advice. I'm really grateful. My partner and I are up against massive problems from a health and employment perspective and this is one situation where I simply can't screw up.

 

[Chicken Run]

Thanks a lot for the advice. I'm really grateful. My partner and I are up against massive problems from a health and employment perspective and this is one situation where I simply can't screw up.

You'll be fine, I don't know many "freeholders " who don't do well out of providing lease extns to their leaseholders.

 

[Wondergull]

So either you're paying huge ground rent, or your 3 bed flat is worth a fortune

Ground rent is only £200 per year

 

[Triggaaar]

Ground rent is only £200 per year

Happy days