Extending Leasehold

[PlanB]

Re: Extending Leasehold

Just had an email back from the freeholders saying if he wants to go ahead they will instruct valuers (which Lee will have to pay for upfront) and also will be responsible for two sets of legal fees.

Only thing that worries me is if their valuation etc comes in high Lee would then have to pay for another valuation so is it best to go through the formal NOA route?

No don't let the Freeholder instruct a surveyor to do the valuation yet :scared: You can get a desktop valuation done for free. The cost of the lease extension is based on a mathematical formula of Ground Rent and the number of years left on the lease and something called "marriage value". I can't stop now to explain but don't let your partner spend money he doesn't need to spend at this stage. He needs to do the maths before he starts to write out any cheques. I'll try to find a link to post here tomorrow to get you started on the research :okay:

Then he'll need to speak to 3 solicitors who deal with these things who will give him a quote for serving the Notice etc. Your bloke will instruct the surveyor of his choice when he's ready after getting 3 quotes for that job. If the Freeholder disagrees with the valuation (which I doubt if you use a FRICS member) only then would he need to pay for a second opinion. If you let the Freeholder instruct the surveyor then there's a chance he'll be asked to provide an *optimistic* valuation

We haven't yet discussed the possibility of *freehold enfranchisement* when the lessees can get together (only 50% needed) and buy the freehold and own the building with equal shares. When you do this you don't need to extend the lease since you own the property as the Freeholder so the length of the lease is immaterial.

It's all very complicated but I'll be back to explain, although I may be in work a bit late tomorrow since I've got to take my car to the garage so I hope that's ok with you :sorry:

Signed: Plan B your personal assistant :typing:

[FlamingParrot]

Re: Extending Leasehold

No don't let the Freeholder instruct a surveyor to do the valuation yet :scared: You can get a desktop valuation done for free. The cost of the lease extension is based on a mathematical formula of Ground Rent and the number of years left on the lease and something called "marriage value". I can't stop now to explain but don't let your partner spend money he doesn't need to spend at this stage. He needs to do the maths before he starts to write out any cheques. I'll try to find a link to post here tomorrow to get you started on the research :okay:

How about this link -> http://www.lease-advice.org/publicat...nt.asp?item=10

Should keep you going till Plan B gets her act together! :grin:

P.s. I also know her from another forum so I'm not being cheeky or anything just my usual self!

[CleverClogs]

Re: Extending Leasehold

I wonder ... how much might it cost Lee to buy Mr Nasty's freehold? :wink:

[jon1965]

Re: Extending Leasehold

I don't know you just can not get the staff these days, car in for repair my foot. Duvet day I bet!

That was my gut feeling as well, find his own surveyor for the valuation or as you say do a desktop valuation (whatever that is)

How about this link -> http://www.lease-advice.org/publicat...nt.asp?item=10

Should keep you going till Plan B gets her act together! :grin:

P.s. I also know her from another forum so I'm not being cheeky or anything just my usual self!

Thanks FP

I wonder ... how much might it cost Lee to buy Mr Nasty's freehold? :wink:

Now that would be a wonderful idea, sadly probably more than he can afford..he would do it just to be bloody minded


Yes and I know all 3 of these reprobates as well

[jon1965]

Re: Extending Leasehold

Seems my staff have gone on strike....I always knew I was a crap boss

[CleverClogs]

Re: Extending Leasehold

I don't know you just can not get the staff these days,

I blame the war...

Duvet day I bet!

With whom?

[PlanB]

Re: Extending Leasehold

With whom?

I plead the Fifth Amendment :tape:

[jon1965]

Re: Extending Leasehold

Right that's it, i am done with you. Don't you know it is ALL ABOUT ME !

[jon1965]

Re: Extending Leasehold

Right, lots of research done. Phoned 3 surveyors and got 3 different quotes although when you look at the probable total they are all about the same.
The freeholder has offered a survey for £250+VAT and the best advice is that for the values involved let them do it as it may well save some money in the long run. If the valuation is agreeable and the terms of the new lease are agreeable then all that is needed will be solicitors.
I was warned to watch out for , ground rent reviews and only extending by a short time. One ground rent review that was tried was £250 a year to double every 10 years.
If the valuation isn't agreeable then we go down the legal route which will add somthing like £900 surveyors fees (that covers negotiation etc ). The suggested price was substantially different to that suggested by the lease info website and that is die to different rates that apply in the midlands, hence the need IMHO to get local surveyors

[jon1965]

Re: Extending Leasehold

Update on this one
Had an offer for a lease extension to 125 years with new ground rent that doubles every 25 years. Have responded with a nice "don't be silly" letter . Waiting for a response will chase in a few days

[FlamingParrot]

Re: Extending Leasehold

I think you can extend your lease after 2 year when leasing start.So as you lived there for 15 years so you can extend your leasing.But you need a lot of advisors like Valuer or surveyor,Solicitor,Lease extension specialist companies.That cost you more.

Uhm, no sure this will be applicable here, you seem to be based outside the UK: :noidea: http://www.legalbeagles.info/forums/...0206-Need-help

[jon1965]

Re: Extending Leasehold

New update.
They have replied with a slightly lower figure but still with only 125 years and still a tripling of the ground rent to then double every 25 years. The ground rent would not be a deal breaker to me , but the OH is insistent it is and it's not my lease.

So what next...can we go to LVT without using a surveyor?
I was thinking of being a bit cheeky and offering the same price but for a statutory lease extension, that being +90 years with peppercorn ground rent and if you don't like it you know where the LVT is.

Any thoughts?

[FlamingParrot]

Re: Extending Leasehold

Colt, stop spamming, have reported your post and we are in the UK anyway, not in OZ! We all have relatives in OZ we can ask for info if we need it, so go away and enjoy the sunshine instead! :lol:

[jon1965]

Re: Extending Leasehold

Speak for yourself FP.....I have no relatives in Aus ...and I missed the spam again

[MissFM]

Re: Extending Leasehold

Speak for yourself FP.....I have no relatives in Aus ...and I missed the spam again

Here it is Jon!