SarahM
24-07-2009, 12:50 PM
I am looking for advice on extending a lease on a 2 bed maisonette with 68 years left on it. We have owned the maisonette for nearly 4 years, and have put it on the market. 3 potential buyers have asked about the length of the lease so I have contacted the freeholder via our management company, and they have quoted £11250 for a new lease of 99 years with ground rent of £150 for the first 33 years, going to £300 for the next 33 years and then £600 for the final 33 years.
I have asked for their calculations and they have used a valuation figure of £150K for the maisonette, a capitalisation rate of 8%, a deferment rate of 5% and relativity of 89%. Looking on the net it seems that their calculations are ok and the figure comes out at around the value that they have quoted to us, but that seems to be for going under 'the act', which would be extending the lease by 90 years (not the 32 years that they have quoted) and then paying peppercorn rent (again not what their terms are stating).
Also, to get the quotation we had to pay £630 for a surveyor to come out and value the property. They also want us to pay all the freeholders resonable legal fees.
I am just looking for an answer on how much we should really be expecting to pay for the lease terms that they have offered to us, as when I phoned the management company and stated the above to them their answer was come back with a counter offer to us....but I have no idea what we should offer back....
Any help would be greatly appreciated.
I have asked for their calculations and they have used a valuation figure of £150K for the maisonette, a capitalisation rate of 8%, a deferment rate of 5% and relativity of 89%. Looking on the net it seems that their calculations are ok and the figure comes out at around the value that they have quoted to us, but that seems to be for going under 'the act', which would be extending the lease by 90 years (not the 32 years that they have quoted) and then paying peppercorn rent (again not what their terms are stating).
Also, to get the quotation we had to pay £630 for a surveyor to come out and value the property. They also want us to pay all the freeholders resonable legal fees.
I am just looking for an answer on how much we should really be expecting to pay for the lease terms that they have offered to us, as when I phoned the management company and stated the above to them their answer was come back with a counter offer to us....but I have no idea what we should offer back....
Any help would be greatly appreciated.