Lease extension - 81 yrs left currently

[nirajshah]

Hi

I need some help / advice reagrding a flat i bought last year for 115k

The flat has 81yrs left on the lease (it is a 99yr lease starting from 24/06/1989). The ground rent is currently £70pa and doubles to £140 after 33years and increases again to £210 for the remainder period

Reading through the forum, it seems i should get it extended asap

Can anyone advice me of how to do the procedure and how much premium i should expect to pay

Many thanks

Niraj

[jeffrey]

Procedure can be by:
a. negotiation (contractually, at common law) with L; or
b. by serving Notice on L, under s.42 of 1993 Act.

Do it asap, before unexpired term dips below 80 years.

[nirajshah]

How much should it cost in your opinion

Thanks

[sgclacy]

Hi

I need some help / advice reagrding a flat i bought last year for 115k

The flat has 81yrs left on the lease (it is a 99yr lease starting from 24/06/1989). The ground rent is currently £70pa and doubles to £140 after 33years and increases again to £210 for the remainder period

Reading through the forum, it seems i should get it extended asap

Can anyone advice me of how to do the procedure and how much premium i should expect to pay

Many thanks

Niraj

The fact the lease is near the 80 year mark is not quite as dire as it used to be. This is because the discounted value of the reversion is now more likely than not to be based on a 5% rate and as this results in a larger figure than before. The amount of marriage value crreated at below 80 years is less than this discounted value of teh reversion so until the lease gets below about 77 years no marriage value arises.

As to value this would be around:-

1) Value of capitilised ground rent £70/140/210 at 7.25% = £1350

2) Deffered value of teh reversion = £115,000/(1.05^81) = £2,210

Total cost of a lease extentsion = £3,560

I would be very confident of that figure to within £200 either way

In addition you would be liable for some of teh landlords legal costs and the valuation fee. But as Jeffrey says do try a negotiate with teh freeholder first