Extending Leasehold

[jon1965]

Re: Extending Leasehold

[jon1965]

Re: Extending Leasehold

Hi again
Well we seem to have reached a complete impasse

The freeholder is saying talk to the surveyor
The surveyor is refusing point blank to let us see the valuation

Two weeks ago we put in a counter offer that was for statutory terms (90 years , peppercorn rent ) at a value we had been advised was appropriate but less than the leasehold advisory tool says

As I see it we could SAR the freeholder to get a copy of the valuation or instruct our own surveyors and go down the formal route but that will cost about £1000

Any thoughts?

[sunshine111]

Re: Extending Leasehold

Hi there Jon1965
found your post and been following with interest. im in the same situation, (informal extension request with similiar remaining lease time) but researching starting the process. mine is complicated by the need (or not) for retrospective consent for moving the kitchen to the adjacent bedroom

anyway, my questions.
how did you raise your request with your freeholder, by letter email, phone?
how did you word it?
is your freeholder an individual or did you go via the managing agents (if they are not one and the same)
would you recommend bypassing the managing agent and going straight to the freeholder - are you allowed to do this?
i only want to bring mine up to 99(not worried at all about the current existing term plus 99 years, whoever comes after me can sort that out).
have you involved a solicitor any way along the process so far?

any tips you can provide will be greatly appreciated.

continued good luck and success with your leasehold extension goals

[jon1965]

Re: Extending Leasehold

Hi Sunshine
Just to put you in the picture, the property is a maisonette (a block of four ground floor and four 1st floor properties-think row of 4 terrace houses with big porches and 8 doors) and belongs to my partner, not me . Luckily I have some good friends who were able to advise.

The freeholder is also the managing agents but I believe for some reason they do minimal management and the only charges are insurance and ground rent

The first contact was made over some issues over access to the communal garden and I asked the freehold company about extension. I also took advice from the leasehold advice line.

I then contacted several surveyors and one in particular was very helpful and gave me some pointers and also a guide price based on the area (Birmingham). At this point I again talked to freehold company and suggested the informal route.
After discussions with my partner I emailed (from him) confirmation that we wanted to go informally as it should be cheaper for all. They then found a surveyor who turned up on the appointed date (late as he had forgotten ) and did the valuation

The offer they came back with was unacceptable mainly because of the increased ground rent (the term may have been ok but remember that at less than 80 years lease extensions become even more expensive ). We asked for the valuation and got a snotty email back so I emailed back offering the statutory extension for a price . To be honest the term and price are negotiable but the ground rent is not (again this effects the price of future extensions )

My partner is , to put it mildly a stubborn sod and is quite likely to cut off his nose to spite his face which makes life difficult for me but we are thinking the statutory route may be the only option. Watch this space.

Hope that info is of use. My advice is, if you do go down the statutory route , take advice, do what you can yourself but shop round for surveyors with local knowledge.

[wales01man]

Re: Extending Leasehold

How can You SAR a surveyor he has no personal info on you and was paid by the freeholder

[CleverClogs]

Re: Extending Leasehold

mine is complicated by the need (or not) for retrospective consent for moving the kitchen to the adjacent bedroom

What did the former kitchen become?

[jon1965]

Re: Extending Leasehold

How can You SAR a surveyor he has no personal info on you and was paid by the freeholder

He was not paid by the freeholder. The cheque was written out to him by my partner and handed to him by me. However I said we could SAR the freeholder although the surveyor may be an option.

[sunshine111]

Re: Extending Leasehold

Hi CleverC
the former kitchen has been turned into a bedroom. so the number of bedrooms remain the same as the original when brought. i swapped the use of the rooms around.

got a shock today. spoke to a friend who sold her leasehold place last year. she advised that the freeholder or his rep, came to inspect her place prior to sale to make sure that she hadnt made any changes - Christ!

[sunshine111]

Re: Extending Leasehold

Hi Jon1965

something i have missed. how does the ground rent affect future extension request?

in the meantime. grateful for the info you have provided so far.

[jon1965]

Re: Extending Leasehold

The value of groundrent is a variable when negotiating the cost of a lease renewal. For a 100000 property with65 years less a £50 ground rent against a £100 ground rent could make a difference of £1000 in the cost

[jon1965]

Re: Extending Leasehold

Well finally got a decent offer back, maybe 1000-1500 more than the price we had been advised but going down the statutory route would cost 1000 in surveyors fees.

Anyway got a 90 year extension at a peppercorn rent as long as it's completed by end June...now the questions are
Is there a legal definition of peppercorn rent?

What is the next move, accept and instruct a solicitor

[FlamingParrot]

Re: Extending Leasehold

Well finally got a decent offer back, maybe 1000-1500 more than the price we had been advised but going down the statutory route would cost 1000 in surveyors fees.

Anyway got a 90 year extension at a peppercorn rent as long as it's completed by end June...now the questions are
Is there a legal definition of peppercorn rent?

What is the next move, accept and instruct a solicitor

Yes, there is: http://property.practicallaw.com/9-202-2741#

A token or nominal rent. The name comes from leases where the rent is one peppercorn a year. Other kinds of token or nominal rents, such as £1, or a red rose each year, may also be referred to as peppercorn rents. A peppercorn rent is often found where a premium has been paid for a lease.

[jon1965]

Re: Extending Leasehold

Bugger that was quick.

Thanks FP

[sunshine111]

Re: Extending Leasehold

Hi John1965
preparing to contact my own Freeholder - not quite sure how to frame it, but could you comment on below draft. Thanks

Dear

i am making enquiries as to an informal request to extend my current lease and would be obliged if you would provide a reasonable figure that would be acceptable to both you and myself to conclude this matter.

yours

[jon1965]

Re: Extending Leasehold

Hi John1965
preparing to contact my own Freeholder - not quite sure how to frame it, but could you comment on below draft. Thanks

Dear

i am making enquiries as to an informal request to extend my current lease and would be obliged if you would provide a reasonable figure that would be acceptable to both you and myself to conclude this matter.

yours

Nothing wrong with that . Another alternative

Re XXXXXX
Dear Sir
I am looking into extending my lease and would be grateful if you could let me know the process. I understand that the informal route is much easier and cheaper for both of us but if you prefer I can follow the statutory route.
Regards

Alternatively , just give them a call and ask what you need to do to start the process. Meanwhile I would call a couple of local surveyors and ask for quotes for valuation for leasehold extensions so that you have a rough figure as to what to expect.

Maybe start your own thread on this one as every area is different