Need some advice on a lease extension

[jphypno]

I have a landlord who historically has been a pain and I'm trying to get her to agree to a lease extension.

I have written to her on many occasions, 4 to be exact, to find out how much it would cost to extend the lease. I have just received a letter from her asking for £1500 per year of extension for a minimum of 20 years.

Now don't get me wrong, I don't know much about extending a lease. But £30K for 20 years!?!?!?! Has she gone mad?? Surely it doesn't cost that much to extend a lease.

I've got 67 years left on the lease & would like to extend it for a further 90.

Can anyone give me some advice as to what I should do??

Many thanks

[Poppy]

Visit the Leasehold Advisory Service website www.lease-advice.org

[jphypno]

Thanks for the reply.

I have already spoken to them & they have suggested that I ge a surveyor to value the lease & then serve a section 42 notice on the landlord.

Is there no way of getting a rough idea of how much would be reasonable to extend the lease?

[tenant29]

If you are living near London, pay a visit to the Residential Property Tribunal Service , 10 Alfred St , London WC1E 7LR ( Near To Warren St tube station). In the ground floor lobby , you can find some box files with recent LVT judgements for lease extension of 90 years at peppercorn ground rent. You should be able to find a case similar to your situation and you can buy a copy from office ( 1st floor) open 10-4pm.

What is the annual ground rent of your flat ?
What is the market value of your flat now and what would it be with another 90 years extension ? The difference ( gain in value) is the marriage value and the freeholder will get half.

If your freeholder is a difficult person to negotiate with, then you should use surveyor. You could ask for a quote from a surveyor before you start and this will give you some idea of what cost to expect for 90 year lease. if boith sides cannot agree then you will have to apply to the Tribunal for judgement.

[jphypno]

The ground rent on my flat is currently £15 per year, with a maintenece charge of £250

[jphypno]

Sorry, forgot to say that the flat is worth aroud £160k at the moment

[tenant29]

The Residential Property Tribunal Service is nearer to Goodge St Tube Station ( NOT - Warren Street Tube Station).

You should take a day off work to research / check the LVT Judgement on past cases of lease extension at this office.

In VERY rough terms, based on several cases I have perused , the average gain in value of the flat after lease extension by 90 years is about 12-15% higher than the current market value. Half of the gain has to be paid to the Landlord.

I also suggest that you get a free copy of " Residential Long Leaseholders"
from Office of Deputy Prime Minister , ODPM Publications, PO Box 236,
Wetherby, LS23 7NB Tel No. 0870 1226 236