Lease- 84yrs. unexpired but Chancery St. James owns f/r

[Anags]

Hello All,

I have a 2 bed flat in a block, built by Fairview in '95 the agents are Chancery St James. It is rented out currently, but there are 84 years left on the lease. I never intended selling but my wife is pregnant with triplets and so everything has changed!!

Although I still don't intend selling, I must now start looking at all scenarios.

I would like to know what my options are:

1. What happens if I just leave the lease to run out, but pay off the mortgage in the next 10 - 15 years?

2. I have been told to write a letter to Chancery St James to initiate enquiries into extending my lease, how can I contact other landlords in the block to see if anyone wants to buy the freehold?

3. As as guide what should I expect to pay to extend/buy it?


thank you forum

Regards


Anags

[jeffrey]

Well, it has 84yrs. unexpired. Even in 10-15 years' time, it will still have 69-74yrs. to go. By then, however, lease extension will inevitably cost more than now. Your best bet, as I think you know, is a collective enfranchisement by all leaseholders (to remove Ch.St.J. from your lives), followed by new longer leases granted to each participant- no longer limited to the statutory 90yr. extension, either, and at a far lower legal fee.

[Anags]

Thanks for your help, what happens if I dont renew it? Can I be repossesed?

[Poppy]

You lease term reduces over the next 84 years. Having enquired about extending the lease, how does being repossessed follow? Have you not paid your mortgage or service charge or have you breached the lease? :confused:

[Gordon999]

Hello All,

I have a 2 bed flat in a block, built by Fairview in '95 the agents are Chancery St James. It is rented out currently, but there are 84 years left on the lease. I never intended selling but my wife is pregnant with triplets and so everything has changed!!

Although I still don't intend selling, I must now start looking at all scenarios.

I would like to know what my options are:

1. What happens if I just leave the lease to run out, but pay off the mortgage in the next 10 - 15 years?

2. I have been told to write a letter to Chancery St James to initiate enquiries into extending my lease, how can I contact other landlords in the block to see if anyone wants to buy the freehold?

3. As as guide what should I expect to pay to extend/buy it?


thank you forum

Regards


Anags

A lease is just a long term rental contract and you have paid a "premium" to rent and use the property. Even after you have paid off your mortgage, the value of your lease will still fall to nothing after 84 years. If you allow the term to fall below 80 years, the cost of extending your lease will cost extra due to inclusion of marriage value factor. So extend your lease before it reaches 80 years remaining or get together with other flats to buy the freehold.

You can get information on "lease extension" and "enfranchisement" by downloading the free publications from www.lease-advice,org .

[Gordon999]

To contact the other flat owners it is better to write a letter to explain the situation and invite their agreement to join you in a "collective purchase of the freehold". It means knocking on doors and you can hand the letter to those owners living on site but if the flat is rented out, you ask the occupying tenant to post the letter to the flat owner or get the letting agents contact details.

The price of the freehold is related to the annual ground rent and value of the properties. If you post the details here, someone may help and offer to calculate the cost. You can also look up some past decisions on enfranchisement by the LVT at www.lease-advice.org

[Anags]

You lease term reduces over the next 84 years. Having enquired about extending the lease, how does being repossessed follow? Have you not paid your mortgage or service charge or have you breached the lease? :confused:

Yes i have paid my mortgage and service charges etc, but I wondered what would happen if the lease ran down to zero? I am aware I am not going to be around then but, I would like to know for future recipients.

[jeffrey]

Yes i have paid my mortgage and service charges etc, but I wondered what would happen if the lease ran down to zero? I am aware I am not going to be around then but, I would like to know for future recipients.
Your capital value would be NIL; your lease would no longer exist.
But you would not be homeless. By Sch. 10 to the Local Government and Housing Act 1989, you would have an automatic Standard Assured Tenancy.

[Poppy]

... Owned by the freeholder.

[Anags]

A lease is just a long term rental contract and you have paid a "premium" to rent and use the property. Even after you have paid off your mortgage, the value of your lease will still fall to nothing after 84 years. If you allow the term to fall below 80 years, the cost of extending your lease will cost extra due to inclusion of marriage value factor. So extend your lease before it reaches 80 years remaining or get together with other flats to buy the freehold.

You can get information on "lease extension" and "enfranchisement" by downloading the free publications from www.lease-advice,org .

Thank you very much Gordon999

[Anags]

Thanks all for the information, I am going to try and extend the leasehold before it dips below 80 years. Are Chancery St. James obliged to grant me an extension? Would you recommend doing it myself or using an intermediary?

[Poppy]

Take a look at the Leasehold Advisory Service (http://www.lease-advice.org/publications/documents/document.asp?item=8#The%20Tenant%27s%20Notice) website.

I definitely recommend that you employ the services of a solicitor.

[jeffrey]

Thanks all for the information, I am going to try and extend the leasehold before it dips below 80 years. Are Chancery St. James obliged to grant me an extension? Would you recommend doing it myself or using an intermediary?
Yes, Ch. St. J. must grant an extension if you:
a. have owned leasehold for at least two years; and
b. serve a valid s.42 Notice.
Unless you know quite a lot about leasehold law, don't DiY.