lease extension at 81 years remaining

[Bill3896]

Hi,

I’ve seen a flat - purchase price £110,000 - with 81 years left on lease -

If present leaseholder hasn't been there 2 years, could I get the freeholder to issue a sect 42 in parallel with me purchasing flat (or extend the lease to, say, 125 yrs), & so get the extension on completion of purchase?

If so, how much would I expect to pay the freeholder, incl. Legal fees.?


Any help much appreciated

[sgclacy]

The cost of teh lease ext would be around the following :-

£2,100 plus around 16 times the current ground rent (unless the ground rent rises in teh next 15 years significantly)

The current lessee can issue a Section 42 Notice and this can be assigned over on exchange of contracts

[Jueyclaire]

would I be right in thinking that this chap needs to get it sorted before the term gets to under 80 yrs to save paying a marriage value on top?

If the freeholder is anything like ours it could take that long if he starts proceedings now:rolleyes:

[jeffrey]

Flat - purchase price £110,000 - with 81 years left on lease...

If present leaseholder hasn't been there 2 years, could I get the freeholder to issue a sect 42 in parallel with me purchasing flat (or extend the lease to, say, 125 yrs), & so get the extension on completion of purchase?
No. Only a leaseholder of two years' standing can serve a s.42 Notice. The freehold reversioner never can.

[sgclacy]

would I be right in thinking that this chap needs to get it sorted before the term gets to under 80 yrs to save paying a marriage value on top?

If the freeholder is anything like ours it could take that long if he starts proceedings now:rolleyes:


You are right that marriage value kicks in at sub 80 years, however the effect of discounting the reversion at 5% means that marriage value does not really appear until the terms is down to around 76 years