Extending a lease

[C8PPO]

We have a 1 bed flat in Battersea on which the lease is now about 84 years. Seeing as we have no option other than to keep it in the current market (been on the market for several months, lots of viewings but no offers), we want to extend the lease now rather than wait until it all gets more messy in the 70s years, when different clauses start to kick in and sale becomes more difficult/less economically sound.

Contacted the landlord via the managing agents and the reply was "yes, more than happy to extend - make us an offer"

What do you think? Under "normal" circumstances I'm guessing this would be somewhere between £3k-£6k for a new 99 year lease, but in the current market, should we go in with something really cheeky? £1000? £1500?

Thanks.

[TWSTEEL]

We've got one for the chihuahua and it extends to about 3 metres.

[chris_w]

Without knowing the details of your place your numbers sound a tad optimistic I'm afraid.

We extended (albeit from 74 yrs, so just below the 75 minimum stipulated by many mortgage lenders) last year on a one bed up the road from you (SW6) and the cost was 10k. It's worth remembering that there are many different variables though.

Ultimately you can make any offer you want but the Freeholder will probably want to know what you based your valuation on. In our case we had a surveyors report put together as the Freeholder can request one anyway (and you will have to pay for it regardless).

One thing to consider is that a collective buyout (enfranchisement) of the Freehold and then granting yourselves the lease) will cost only marginally more but will have a greater impact upon the value of your property (and give you the ability to set your ground rent to zero and set up your own management company thus further reducing your annual outgoings). Whilst this wirked ok for our 4 flat Victorian conversion I suppose this would prove onworkable in a larger building.

Check out this website for more info:
http://www.lease-advice.org/

[C8PPO]

Ah thanks. I think the buyout option may not work here (purpose built block of 8 flats) as some are rented and potentially the owners may not want the involvement of a mgmt company, and in fact the landlord actually owns at least 2 and rents those.

Will look at getting a survey valuation done.

[chris_w]

C8PPO said:

I think the buyout option may not work here (purpose built block of 8 flats) as some are rented and potentially the owners may not want the involvement of a mgmt company, and in fact the landlord actually owns at least 2 and rents those.

You can 'force' a buyout if you have a 75% majority (iirc) but, as you say, with such a large number of flats it may prove impractical and more trouble than it's worth, especially if you have a management company you're happy with.

Good luck, hope you get yours completed quicker than ours (approx 18 months!).

[Steamer]

Not sure if your situation is similar to my own, but there are 4 of us with apartments in a very old house - the leaseholders are the elderly couple that used to own the whole place.

When the leases got down to about 65 years, they VERY kindly said as long as we pay all the fees we could renew the lease and they wouldnt charge us.

We've now got 190+ years for about £300 each all inc.

[chris_w]

Steamer said:

When the leases got down to about 65 years, they VERY kindly said as long as we pay all the fees we could renew the lease and they wouldnt charge us.

We've now got 190+ years for about £300 each all inc.

• thud*

You lucky, lucky b*****d! Hope you bought them a very nice thank you present!

[Steamer]

chris_w said:

Steamer said:

When the leases got down to about 65 years, they VERY kindly said as long as we pay all the fees we could renew the lease and they wouldnt charge us.

We've now got 190+ years for about £300 each all inc.

• thud*

You lucky, lucky b*****d! Hope you bought them a very nice thank you present!

Its not all laughter & joy here at Faulty Towers... I've been chasing dryrot for the last 2 years