[Help] Lease extensions

[astralavi]

Is the other person joint freeholder?

 

[B-right-on]

If the flat is only worth £270k even with a normal length lease , the cost to extend from 68 to 99 years or 110 years is approx £24,000

I sold a BTL flat I owned in Bexhill last year for £68k with a 65 year lease. It would have cost me £22k + fees to extend it to 99 years thru the mgmnt co.

With a 99 year lease it was valued at £90k. Hence selling without extending the lease.

I would have thought £24k very low compared to my experience.

 

[amexer]

This can have downsides to it, one couple I know have to find thousands to pay their share in roof repairs they simply don’t have that type of money at the moment.

Whether you are leaseholder or have a share of freehold they will have same obligation to pay same share

 

[Binney on acid]

How could you possibly come up with a figure without knowing the ground rent!

The ground rent is £50 per annum per flat.

 

[Binney on acid]

Is the other person joint freeholder?

I am the freeholder. I own 2 of the 4 flats.

 

[Ⓩ-Ⓐ-Ⓜ-Ⓞ-Ⓡ-Ⓐ]

Lease it back to the freeholder at the rate of the ground rent x the length of lease, then subtract the value of the freehold minus the value of the apartment divided by the length of lease and bobs your uncle, a new tracksuit and a full tank of gas!

 

[Lincoln Imp]

An unusual proportion of the posts on this thread are completely bizarre.

 

[Super Steve Earle]

I would suggest a solicitor would be more use than NSC in this instance. Rare, but true.

 

[Lincoln Imp]

If the flat is only worth £270k even with a normal length lease , the cost to extend from 68 to 99 years or 110 years is approx £24,000

Seems high, notwithstanding the shortness of the remaining lease. A reputable leasehold enfranchisement agency recently estimated a figure of between £8.5k and £11k per flat for leaseholders to acquire joint freehold ownership of the block in which their flats are situated. The average value of the flats is probably about £250k. Ground rent is a handful of hundreds pa. The leases have a little under 100yrs on them. Leaseholders who own a share of the building's freehold can effectively grant themselves 999 year leases without charge, other than legal costs.

 

[East Staffs Gull]

The ground rent is £50 per annum per flat.

The Leasehold Advisory Service calculator seems to give an estimate of c.£30,000 excluding costs, but you’d be best placed to estimate the value of the property assuming a 90 year extension, which is one of the calculator’s required inputs.

 

[Live by the sea]

Seems high, notwithstanding the shortness of the remaining lease. A reputable leasehold enfranchisement agency recently estimated a figure of between £8.5k and £11k per flat for leaseholders to acquire joint freehold ownership of the block in which their flats are situated. The average value of the flats is probably about £250k. Ground rent is a handful of hundreds pa. The leases have a little under 100yrs on them. Leaseholders who own a share of the building's freehold can effectively grant themselves 999 year leases without charge, other than legal costs.

The price to extend , goes up steeply once you are below 69 years unexpired . I didn’t make the £24,000 up , I used a standard lease extension calculator ( there are several online ) to reach that figure . I totally agree if you are able to purchase the freehold , that’s often a cheaper option .

 

[amexer]

The charges for lease extensions are immoral and the sooner new laws come in the better

 

[astralavi]

I am the freeholder. I own 2 of the 4 flats.

hopefully there is not risk of collective enfranchisement

 

[phoenix]

Looking for assistance here. Approximately how much would would you expect to pay for a 90 year lease extension on a flat worth about £270k, that has 68 years left on the existing lease. I am the freeholder. After years of being spoken to as If I'm something that the guy has trodden on in the street, all of a sudden he's looking to extend his lease.

Mine had 72 yrs left and property was worth £170,000 to extend the lease to 125 years cost me £16,000

Very basic but you should be in for a decent wedge there, good luck.

 

[Shropshire Seagull]

I always thought it was pie arghhh squared?
And resulted in 42