UK Landlord Forum / Life

Hi

I'm new to this forum so apologies if I've posted this in the wrong area, or there's already a discussion re this elsewhere.

I'm after some advice re extending my lease.

I have 80 years left on my lease on a flat, which originally started with just 120 years.

I've read that when you get to 80 years and below, the freeholders like to take advantage; and add extra costs!
I'm therefore wanting to increase my lease. I've contacted the freeholders re costs, but they're being a bit awkward and not willing to provide me a cost for the extension, until I initially pay around £900 for a valuation, only after that they will serve a section 42 notice, which again I'll be liable to pay for via appointing a solicitor, then they'll provide a cost for the extension!

it seems quite costly, just to find out a price, that may be way to high for me to even consider in the end.

I've also heard about this Leasehold Reform Legislation which was discussed back in January, but nothings certain about when it'll come into play (if it ever does).

I'm keen to know if anyone has ever been in a similar situation and how it was resolved. Also if anyone can advise if I should go ahead with the process as mentioned above, as I only have 80 years left, or should I wait etc, or if there are other ways/options.

Thanks

It'll come into play before 80 years... so just sit back and observe. It won't be bad for Leaseholders, right?

Agree with Hippogriff.With 80 years left you don't need to be rushed into anything. When the time comes there are specialist companies and lawyers you can consult,also a lot of information and pricing charts online.

Hi my first post having been lurking for a couple of years. I own a flat which now has 83 years left on the lease and I am in the final stages of extending it. I paid £550 for a valuer to come out and he came up with a recommended figure as to what it would cost. It has taken me 2 different solicitors and 3 years to get to this point. Everything has finally been agreed now and altogether is going to cost approximately £7500.

Your solicitor should issue the section 42 notice and you should get 90 years added to your lease and ground rent reduced to zero/peppercorn.

If you are going to do this I would start now as solicitors are very busy at the moment with property purchases and if your freeholder is anything like mine they are extremely awkward and happy to just let your lease run down to nothing. Also, every year your property drops below 80 years it devalues and the lease becomes more expensive to extend.

Good luck, please let me know how you get on.

Where to people feel this fits in to the story:

https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes

I have a deceased estate family flat of which I am executor with a short lease (not mortgageable), the Freeholders, who are awful to deal with, have promised to sort this but never do anything. The y are renowned for it. I felt this may help.

thanks,

Quote from: CWood on March 12, 2021, 10:55:54 AM
Where to people feel this fits in to the story:

https://www.gov.uk/government/news/government-reforms-make-it-easier-and-cheaper-for-leaseholders-to-buy-their-homes

I have a deceased estate family flat of which I am executor with a short lease (not mortgageable), the Freeholders, who are awful to deal with, have promised to sort this but never do anything. The y are renowned for it. I felt this may help.

thanks,

Very interesting but if I show this to my freehold company I'm sure they won't be very interested.  If the law is changing then I don't understand why they aren't trying to get as much money out of me whilst they can?

Quote from: Denzy on March 12, 2021, 05:50:24 PMIf the law is changing then I don't understand why they aren't trying to get as much money out of me whilst they can?

They already have [got as much money out of you as they can]... you're now a done deal, aren't you? It's highly unlikely that a Lease extension will cost £7,500 in the future.

Your advice to "start now" is exactly backwards... best to be patient. I spoke to a Solicitor myself a short time back... his advice was for me to "start now" too... strange that. I wrote to him and asked whether this new legislation (whenever it might come in) would mean things appear as if they'll be dramatically cheaper, and easier, for me... he didn't reply. Whatever anyone does - it's unlikely to be best to "start now". This is reform - the objective being to "reduce the price payable". Although vested interests from powerful parties (Landlords) might water things down the intention is clear... the overall benefit should be to Leaseholders, not Freeholders... so wait-and-see. Things won't become "free" by any means... but they should get better... simpler (and there's even promise of an on-line calculator to aid in transparency of the whole thing - I'll believe it when I see it).

Quote from: Hippogriff on March 13, 2021, 07:54:28 AM

Quote from: Denzy on March 12, 2021, 05:50:24 PMIf the law is changing then I don't understand why they aren't trying to get as much money out of me whilst they can?

They already have [got as much money out of you as they can]... you're now a done deal, aren't you? It's highly unlikely that a Lease extension will cost £7,500 in the future.

Your advice to "start now" is exactly backwards... best to be patient. I spoke to a Solicitor myself a short time back... his advice was for me to "start now" too... strange that. I wrote to him and asked whether this new legislation (whenever it might come in) would mean things appear as if they'll be dramatically cheaper, and easier, for me... he didn't reply. Whatever anyone does - it's unlikely to be best to "start now". This is reform - the objective being to "reduce the price payable". Although vested interests from powerful parties (Landlords) might water things down the intention is clear... the overall benefit should be to Leaseholders, not Freeholders... so wait-and-see. Things won't become "free" by any means... but they should get better... simpler (and there's even promise of an on-line calculator to aid in transparency of the whole thing - I'll believe it when I see it).

No I am not. I've only paid the legal fees and valuation fees so far. That's why I don't understand why they aren't pushing for the main part of the money. Why is it strange I said the same thing as a solicitor? They don't make mega bucks out of it anyway, their fees to me are £420 inc vat. But, looking at the article posted by Cwood, you may be better off waiting, especially if you have a number of these type of properties. But don't expect the freeholder to just roll over and have their belly tickled. I'm nearly done now, 90 years extra will be enough for me so I will stick with what I am doing.