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Oct, 2014

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  1. #1

    Default How much to extend my lease help please

    Hi
    i need some help and advice please,
    i have owned my 1 bed flat for 3 years,the lease was 99 years from 25th dec 1973 with a ground rent of £25 per annum,the property is approx £75/80 grand, i have also been told it is a rolling lease ,what does this mean?
    my first question is how many years are left on the lease,my second question is does any one have any idea the kind of money i am going to have to pay to extend it ,what is a rolling lease ,and lastly would i be able to sell for maybe 65 grand without extending the lease or should i extend
    freshwater prop are the leaseholders
    any help much appreciated

  2. #2

    Default

    The fixed term of your lease will expire in December 2072. You therefore have just over 62 years to run.

    Sorry - I can't help you with the valuation issues.

  3. #3
    Join Date
    Sep 2006
    Location
    Sheffield
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    39,409

    Default

    Quote Originally Posted by nina View Post
    I need some help and advice please,
    i have owned my 1 bed flat for 3 years,the lease was 99 years from 25th dec 1973 with a ground rent of £25 per annum,the property is approx £75/80 grand, i have also been told it is a rolling lease ,what does this mean?
    No idea- it's meaningless. So by whom 'have [you] also been told'?


    Quote Originally Posted by nina View Post
    freshwater prop are the leaseholders
    No- you are the leaseholder; they are therefore probably the freehold reversioners.

    But beware- they are often mentioned as being quite demanding, so be prepared for fierce negotiations. Are you using the services of a sharp Chartered Surveyor? If not, please do. You'll save money that way!

    You do have a legal right to extend [s.42 of 1993 Act] by serving them with a formal Notice of Claim.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  4. #4
    Join Date
    Sep 2009
    Location
    Greater London
    Posts
    1,508

    Default cost of lease extension

    62 years is considered short, pretty much unsaleable without an extension; all told, to include your professional advisors and those of the freeholders whose you will be required to pay, dont expect much in change from £10,000!

  5. #5
    Join Date
    Sep 2006
    Location
    Sheffield
    Posts
    39,409

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    nina: was the ground rent of £25 fixed for the whole length of the lease? By 'rolling', perhaps you meant 'escalating'- i.e. a ground rent that rises.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  6. #6
    Join Date
    Jun 2010
    Location
    Foundation trench for New Shed@ Ham on Rye
    Posts
    14,899

    Default Freshwater are Leaseholders

    Freshwater or rather one of the group companies may be the head lessor.

    1: Nina look at sglacy posts on leasehold valuations:
    2:Read the lease and see if the person who granted you the lease has a freehold or leasehold title, or go to HMLR on line to get office copy entries for your flat.
    3: I agree with Jeffrey, if you are at all unsure, bite the bullet, contact RICS.org and find a local surveyor to act on this, Freshwater are tough operators. It's worth the extra.
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers. More ramblings atleaseholdpropertymanager.blogspot.com

  7. #7

    Default

    Hi
    i was told by solicitor when i purchased it was a rolling lease
    i have the original lease from 1978 issued in the previous persons name should i have 1 with my name on??
    it is issued from town and country propertys but i am invoiced for ground rent of £25 per year from freshwater
    have no idea what im doin or what i should be doing

  8. #8
    Join Date
    Sep 2006
    Location
    Sheffield
    Posts
    39,409

    Default

    Quote Originally Posted by nina View Post
    i was told by solicitor when i purchased it was a rolling lease
    It's still meaningless: sorry!

    Quote Originally Posted by nina View Post
    i have the original lease from 1978 issued in the previous persons name should i have 1 with my name on?
    No. It was transferred to you on completion. You are now its registered proprietor.

    Quote Originally Posted by nina View Post
    it is issued from town and country propertys but i am invoiced for ground rent of £25 per year from freshwater
    So? In just the same way as your leasehold changed hands when you bought, the freehold reversion changed hands too.

    Quote Originally Posted by nina View Post
    have no idea what im doin or what i should be doing
    Er, we noticed! Why not take legal advice and get more clued-up?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  9. #9
    Join Date
    Jun 2010
    Location
    Foundation trench for New Shed@ Ham on Rye
    Posts
    14,899

    Default

    If we ASSUME you have a conventional lease of 99 years from 25-12-1973, and using your stated current value of £77500 and the rent £25 stays the same for the whole 99 years, and using one of the lease extension calculators AS A GUIDE the extension could be around £7000 to £8000. If as it should, the ground rent has increased and will do so again that will push the value upward.

    To say with certainty someone needs to look at the lease and a title search.

    If Freshwater are the freeholders then you can apply to them, or if they have a head lease ( eg You have lease of the flat, they of the whole building) you may have to apply to the freeholders.

    You can write informally to express interest, as it is likely they have extended other leases in the building by now, and have some figures in mind. They may simply refuse and you will have to make a formal application.

    But if you want to worry less find a solicitor and or surveyor to take the worry out of it.
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers. More ramblings atleaseholdpropertymanager.blogspot.com

  10. #10
    Join Date
    Dec 2006
    Posts
    584

    Default

    Quote Originally Posted by quarterday View Post
    62 years is considered short, pretty much unsaleable without an extension; all told, to include your professional advisors and those of the freeholders whose you will be required to pay, dont expect much in change from £10,000!
    Knowing Freshwater Group, expect legal and surveyors cost of about £3,000.

    Check Leasehold Advisory Service and look for Section 60 cases decided by LVT. You will see that a large number of these cases refer to properties where the freeholders are Freshwater Group or their subsidaries.

    Good luck.
    Kikuyu

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