82 year lease

[Michelle]

:confused: Hi i also need some advice on lease extensions. I have put an offer on top floor flat catford 82 year lease and want to know

1 How much it would cost to extend and is it worth it?

2 Should i buy freehold?


3 ( Slighty different subject) but what should service charges of £250 a year on top floor flat include. I was told that any structural problems are fixed by the freeholder? is that true. have heard horror stories of freeholders that dont want o fix properties??????????

I have seen a few properties around south/ southeast and like this one very much its not a double bed and has know double glazing. Needs (i would like) new kichen and change bathroom parts. Am starting to think this property is over priced if i have to pay 5-10 grand to extend lease ..

4 Can i drop my offer price or is it too late?????????????????


please help as i dont have very long.

[Michelle]

so fed up now feel like pulling out

[jeffrey]

Qy 2: Do not buy freehold of one flat: horrendous covenant problems happen.
But you and other lessees could collectively purchase freehold for whole block.
Qy 4: Your offer is "subject to contract" until exchange of contracts- so, yes, you can withdraw it at any time until then. There might be legal fees for wasted work, though.

[Poppy]

1 How much it would cost to extend and is it worth it?

The price is negotiable between yourself and the freeholder.

2 Should i buy freehold?
Is it for sale or are you intending to wrest control from the freeholder?

3 ( Slighty different subject) but what should service charges of £250 a year on top floor flat include. I was told that any structural problems are fixed by the freeholder? is that true. have heard horror stories of freeholders that dont want o fix properties?
At the very least it should include buildings insurance. Every lease is different. You need to read and fully understand the lease before purchase.

4 Can i drop my offer price or is it too late?
You can do what you like. It only starts to become disadvantageous if you pull out after contracts have been exchanged.

[Michelle]

Thanks guys

Thank you for getting back to me.

Everything you said is spot but i so wanted this flat and cant believe im back to square one.
Im hoping to find out from my solicitor who the free holder is but honsetly i cant see what difference its going to make unless they drop the price by at least 5k. Think there not going to budge. Not long been on the market and they probably think they could get a better offer. Someone will probably want to let it and there is always someone with more money to squander.

:(

[tenant29]

How many flats are there in the block ? and what is the annual ground rent payments stated in the lease ? 25 pds per year ?

If you get a copy of the title from the Land registry, it will show the start of the lease and may show ground rent payments. You must get confirmation there is still 82 years left.

You should consider getting the seller to extend the lease by 90 years at a peppercorn ground rent whilst the lease is still over 80 years. When the lease falls below 80 years, the cost of lease extension involves an extra payment for "marriage value" which could raise the cost to 5K. Another member of this forum recently advised he was able to get a 90 year lease extension on his existing 82 lease ( 50 pds ground rent ) for about 1600 pds.
If you buy the flat without extending the lease, the rules will require you to wait 2 years , then your lease will be under 80 years left and the the cost of extension will be much higher.

You should ask the seller if he is aware of any other flat owners in the block have tried to organise a purchase of the freehold for the whole block. If all the other flats have 82 years remaining on thier leases , they should be doing something to avoid the dreaded marriage value. But this option requires collective action by atleast 50% of the leaseholders.

Before you put an offer , you should check out everything and understand what if required for flats with around the 80 years lease. Read all the threads on this forum and get the lease extension booklet from LEASE
www.lease-advice.org

[Michelle]

Hi sorry I took so long to get back to you. The flat is a conversion (House) so only to owners.
It about £25 a year ground rent and £250 a year service charges.

Another thing. The present owners of the downstairs property have privately sold their flat to a lady. They have decorated and double-glazed it nicely but the upstairs property im hoping to buy is in bad need of attention. Another cost I need to add to the list. (No double glazing peeling paint)

Imp wondering why the freeholder did not decorate the whole house or maybe the downstairs owners didn’t bother to tell them or could not find them. So in the future will this cause problems. Because I would like the upstairs decorated to blend in with the whole house and to top it off, they painted it cream it looks nice but white would look so much cleaner and easier to match.

The two owners could have got together and sorted something out this is why im weary about the lack of communication between the owners and the freeholder. I still have not found out who this is.

And another thing the vender reckons she did not realise she needed to give this information over for the sale to go through so she has just completed all the forms and sent to her solicitor. (Umm itchy chin, itchy chin). Apparently she had now found a property but there is a chain of about three in front of her.

Hoping for her to extent the lease before I buy.

What is the best way to approach her about it should I go through my solicitor??????

[tenant29]

You should contact the downstairs lady buyer and ask if her lease was extended and if, so what amount was paid. Ask if she is willing to buy the freehold jointly with you ?

The freeholder's name and address can be found on the annual ground rent invoice which you should be able to get a copy from the vendor. But if no copy is available to you then you can use the Land Registry online service to buy the information -

(1) a copy of the freehold title ( to find the name of the freeholder ) and

(2) a copy of the leasehold title for upper floor flat ( to confirm the name of leaseholder and the years left on the lease).

It costs 3 pds per download enquiry ( but check if your solicitor has already done this ?) from website- http://www.landregisteronline.gov.uk/

I think your solicitor ( who should be experienced in leasehold property conveyancing and lease extension ) should advise you and should be asking vendor's solicitor to apply for the lease extension which can only be started by a leaseholder after 2 years or more.