stick2000
15-02-2008, 10:43 AM
Following on from my previous post, I have received a letter from the agent who is acting on behalf of the freeholder and the letter states:
"on the basis that you qualify under the terms of the Leasehold Reform Act 1993 (as amended by the Leasehold Reform and Commonhold and Reform Act 2002), we would be prepared to recommend a new lease term extension of 90 years plus your existing term, This lease to be subject to a ground rent of £100 doubling on 24th june 2024 and every 25 years of the new and extended term thereafter.
For this a premium of £11,000 would be payable plus our clients' legal and surveyor's costs.
Our clients' surveyors/valuation costs will be in the sum of £375 plus vat."
Well we do qualify and have been uming and ahing as to whether to accept the offer as I said in my previous post I was expecting it to be higher but not sure about the ground rent, but then again time value of money means it's not actually that much.
I've been thinking about it and am thinking that maybe it would be worthwhile counter-offering and offering say £9k with the same ground rent and seeing what comes of it?? Could I send a letter back saying something like - the act states that ground rent should be peppercorn and their offer isn't but would be willing to pay higher ground rent if premium was reduced to £9k??
At this stage my solicitor is aware that I am looking to extend the lease and I have told him about the letter I've had back but he's not been instructed to do anything.
What do I need to do, do I need to instruct my solicitor yet or can I send a letter back to them with my offer and see what I get back?? Do I have to get a valuer aswell or just use solicitor??
"on the basis that you qualify under the terms of the Leasehold Reform Act 1993 (as amended by the Leasehold Reform and Commonhold and Reform Act 2002), we would be prepared to recommend a new lease term extension of 90 years plus your existing term, This lease to be subject to a ground rent of £100 doubling on 24th june 2024 and every 25 years of the new and extended term thereafter.
For this a premium of £11,000 would be payable plus our clients' legal and surveyor's costs.
Our clients' surveyors/valuation costs will be in the sum of £375 plus vat."
Well we do qualify and have been uming and ahing as to whether to accept the offer as I said in my previous post I was expecting it to be higher but not sure about the ground rent, but then again time value of money means it's not actually that much.
I've been thinking about it and am thinking that maybe it would be worthwhile counter-offering and offering say £9k with the same ground rent and seeing what comes of it?? Could I send a letter back saying something like - the act states that ground rent should be peppercorn and their offer isn't but would be willing to pay higher ground rent if premium was reduced to £9k??
At this stage my solicitor is aware that I am looking to extend the lease and I have told him about the letter I've had back but he's not been instructed to do anything.
What do I need to do, do I need to instruct my solicitor yet or can I send a letter back to them with my offer and see what I get back?? Do I have to get a valuer aswell or just use solicitor??