above the Act Leasehold extension costs

[loz483]

Hi, I have been trawling the web literally all day trying to find out as much as I can about the cost of extending the lease on my flat - so I am very grateful to stumble upon this website with so many experts.

I was planning to group together with the 3 other flat owners in my building and buy the share of freehold, but on receiving the report from our valuer, one of the parties has pulled out of doing this as they cannot afford the cost. The valuer's LOWEST possible figure for this was just over £12,000 per flat. With the other flat not participating anymore - I cannot afford to proceed with this either so I have been looking into extending the lease instead.

In May 2009 I will have owned the flat for 2 years and I am trying to decide whether or not to bother with extending the lease to make the flat more saleable.

In (July) 2009 there will be 75 years remaining on the lease.
The current value of the flat is £195,000
The ground rent is £50 per year for the next 10 years
then £100 a year for the next 33 years
then £150 a year for the remaining 33 years

Please is anyone able to tell me about how much it is likely to cost to extend the lease by 90 years on a peppercorn rent?? :confused:

Or any other advice would be gratefully received - do I even bother extending the lease or just try ad sell the flat as it is at a reduced price ???

THANK YOU in advance

[jeffrey]

1. You should certainly extend asap. Although you do not yet have statutory powers, L and you can still agree/complete a non-statutory Deed of Surrender and Re-grant.
2. An unexpired term of < 80 yrs. triggers marriage value payment, inevitably increasing the premium (not a lot at first but by steadily rising amounts as time goes by).
3. An unexpired term of < 70yrs. is difficult to mortgage, too.

[sgclacy]

Hi, I have been trawling the web literally all day trying to find out as much as I can about the cost of extending the lease on my flat - so I am very grateful to stumble upon this website with so many experts.

I was planning to group together with the 3 other flat owners in my building and buy the share of freehold, but on receiving the report from our valuer, one of the parties has pulled out of doing this as they cannot afford the cost. The valuer's LOWEST possible figure for this was just over £12,000 per flat. With the other flat not participating anymore - I cannot afford to proceed with this either so I have been looking into extending the lease instead.

In May 2009 I will have owned the flat for 2 years and I am trying to decide whether or not to bother with extending the lease to make the flat more saleable.

In (July) 2009 there will be 75 years remaining on the lease.
The current value of the flat is £195,000
The ground rent is £50 per year for the next 10 years
then £100 a year for the next 33 years
then £150 a year for the remaining 33 years

Please is anyone able to tell me about how much it is likely to cost to extend the lease by 90 years on a peppercorn rent?? :confused:

Or any other advice would be gratefully received - do I even bother extending the lease or just try ad sell the flat as it is at a reduced price ???

THANK YOU in advance

I am surprised that if your flat is worth £195k (so I will assume its value with a long lease would be around £205k) your surveyor advised that the cost per flat would be £12k. I calculate it at around £7k per flat. Please can you give more deatils of your surveyoprs valuation, for example what relativity % did he use at 75 years