Length of extension offered by freeholder

[Drowning in debt]

Hello,

I have a maisionette with circa 54 years left of original lease.

Value with long lease is £130k, £120k without. Grnd rent £30 pa.

I have only owned one year but have approached the freeholder as to extending the lease, which they are willing to do so, but have said I relinquish the current lease and they will give me a brand new lease at 99 years for £9k.

Is this correct, as I thought it had to be an extension of 90 years at a peppercorn ground rent?

I understand I do not qualify under the terms of the act, is this why they are offering different terms, or is it just the case that the lease is just different on this one?

Should I accept?

[jeffrey]

Yes. If you had already owned leasehold for >2 yrs., L would have had to execute Deed of Surrender and Re-grant extending lease by 90 yrs. and eliminating the ground rent. In your present case, you cannot (yet) claim that nor serve any statutory Notice.
You must choose whether to:
a. buy what is on offer; or
b. wait until second aniversary of your original purchase and then demand the 90 yrs.

Of course, you could even do both- but that costs two lots of fees.

[Drowning in debt]

Thanks Jeffery.

Do you think the cost of the premium would increase much if I waited an extra year?

[jeffrey]

Thanks Jeffery.

Do you think the cost of the premium would increase much if I waited an extra year?
Hmm. My crystal ball isn't logged-on yet.
Lease extension cost inexorably rises, year by year. Even with statutory rights, it would be expensinve (as lease has only 54 yrs. unexpired).