How much do you charge for extended lease?

[Mochamoo]

From MIL:

Do you know anything about leaseholds? The guy downstairs wants to extend his lease and as we are the freeholders, we have to decide how much we will charge. Any ideas?

[Sapphire]

Re: How much do you charge for extended lease?

Mocha, I inherited a flat from mum when she died last year, its only got 65 years left on the lease, I wrote to the leaseholder a week ago enquiring how much it would be to extend the lease, when I get the reply I'll let you know how much it is hun, you never know you might be able to use the figures as a guide.

[Mochamoo]

Re: How much do you charge for extended lease?

this is what the leaseholder is meant to do....(good old google)



- Get a surveyor to provide you with an estimate of the cost of an extension: you can then present the freeholder with a figure. Valuing a leasehold extension is a complex business: it depends on a number of variables, including the market value of the flat, the length of time left on the lease, the value of the landlord’s interest (how much ground rent is received, how much the flat is likely to be worth at the end of the lease). As with ordinary house purchase, the cost of an extension is a matter for negotiation.
- You can then either serve a formal notice of your intention to extend your lease, or you can open informal talks with the freeholder.
- If you and the freeholder cannot agree a price, you need to take the case to the LVT.

[Mochamoo]

Re: How much do you charge for extended lease?

lovely bloke on landlordzone gave me this link The Leasehold Advisory Service - Homepage

[Sapphire]

Re: How much do you charge for extended lease?

I got the letter back this morning, here's some relevant bits, hope it helps.

We are able to respond to your request for terms for a 'Lease Extension' as follows:

1. Premium: £15,650

2. Term of Lease: 99 years from 29 September 2009

3. Ground Rent: To commence at £250.00 per annnum (payable in advance) doubling every 20 years.

4. Preparation of documents: We will draft the Lease.

5. Costs: Our in house administration to be charged to you in the sum of £850.00

6. Lanlords' registration fee: To be increased to £50.00 per document.

Couple of other bits and bobs too, if you want them shout and I'll post them up.