Lease extension- 71yrs. unexpired, £25 rising ground rent

[swhite]

I have 71 years left on my leasehold flat

I purchased the flat 5 years ago at 109,000
A flat with an extended lease recently sold for 175,000
The ground rent is £25 doubling every 25 years
I am negotiating with my freeholder directly at the moment
The landlord would like to extend the lease only back to 99 years
and has asked for 10,000 plus costs and also wants to increase the ground rent to 250pa doubling every 25 years.
The leasehold advisory service calculator suggests between 8,000 and 11,000
but this is I assume for a full 90 years over the remaining lease and a peppercorn rent.

Any advice gratefully received
thanks

Stefan

[jeffrey]

Serving a s.42 Notice seeking a statutory 90yr. extension will:
a. lead to a new lease obviously cost more than an inferior one for a shorter term at a money ground rent; but
b. be better value for money; and
c. entitle you to refer the matter to LVT, if L and you cannot agree premium and other contents of new lease.

[TomMerralls]

Are you looking to sell in the near term i.e. within next 6 months? If so, the statutory route usually takes 6-9 months, and this may be relevant. If you have no intention of selling in the near future, the statutory route usually results in a better deal (even when you take into consideration the additional professional costs), but this cannot be guaranteed of course. It really depends on what deal you reach with your freeholder.

As Jeffrey points out, the new term will be 161 years and at a zero ground rent if you go down the statutory lease extension route.

[Gordon999]

Best top go for a 90 years extension + peppercorn ground rent as the 99 year top up option + 250 year ground rent doubling up every 25 years just brings the " lease extension problem" back in 19 years.

Why pay almost the same money for just a 19 years delay ?

[TomMerralls]

Because sometimes it is better for flat owners who wish to extend their lease simply to be able to sell the property. If they can reach a deal at a lower price and have the lease extended more quickly, this puts them in a better position to satisfy their short term aims. In my experience, flat owners in these situations are generally not interested in who will have to deal with the problem in say 15 year's time or so.