Lease owners charging high price for lease extension

[morgan7817]

hi, the person who owns the lease to my flat is trying to charge £12000 + the lease owners costs to extend the lease another 90 years. There are currently 57 years left on the lease, and all 6 flats wanting to extend the lease. i think this is too much. i would be extremely grateful for advice on the amount i should pay per flat and how to go about negotiating.

many thanks

[jeffrey]

hi, the person who owns the lease to my flat is trying to charge £12000 + the lease owners costs to extend the lease another 90 years. There are currently 57 years left on the lease, and all 6 flats wanting to extend the lease. i think this is too much. i would be extremely grateful for advice on the amount i should pay per flat and how to go about negotiating.

many thanks

1. Definitions: YOU, morgan, are the tenant/leaseholder (T). You hold a lease, don't you?
2. "The person who owns", in your post, is your landlord (L) and, I imagine, the freehold reversioner.
3. L wants a premium of £12 000 to extend lease, ie enter into a Surrender and Re-grant (terminating old lease but granting new one for 57 yr residue + 90 yrs more (= 147 yrs). This procedure is in accordance with the 1993 Act. I cannot comment on valuation aspect.
4. If all six lessees are in same position, it would be cheaper (and reduce legal fees too) if they collectively purchase f/r from L under the Act . This will necessitate forming a new company (C) limited by guarantee, as their nominee/vehicle. C can then re-grant leases, one each.

[morgan7817]

yes i do hold the lease, how would we go about purchasing an f/r under the legal act, is it successful, where could i find out information about it? sorry if i seem nieve.

thanks

[jeffrey]

yes i do hold the lease, how would we go about purchasing an f/r under the legal act, is it successful, where could i find out information about it? sorry if i seem nieve.

thanks

Perhaps L will negotiate with all of you. If not, you all (or at least four of the six) should serve a Notice under s.13 of Leasehold Reform Housing and Urban Development Act 1993.
Do not try either procedure on your own- get professional assistance from solicitor. You might need a surveyor if L proves unco-operative but you will ultimately get the f/r because that is your (collective) right.
Good luck!

[tenant29]

yes i do hold the lease, how would we go about purchasing an f/r under the legal act, is it successful, where could i find out information about it? sorry if i seem nieve.

thanks

You can download the information on "collective enfranchisement" from Leasehold Advisory Service's website

www.lease-advice.org.uk

[sgclacy]

If you let me have details of the ground rent and the value of the flat (if it had a very long lease) and an indication of the area I should be able to advise as to whether the premium is in right ball park. If its in London I would be surprised if £12K was too much