Extension of lease

This topic contains 6 replies, has 6 voices, and was last updated by  frederickprice 3 months, 1 week ago.

Viewing 7 posts - 1 through 7 (of 7 total)
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  • #4262

    rcass
    Participant

    Hi All

    I want to apply to extend my lease. Is there anyone who has done this already who is willing to give me information about the process?

    Thanks
    Roslyn

    #4264

    greeves
    Participant

    Hi. My partner went to an open drop in run by Leasehold Solutions, a company which helps leaseholders extend their lease. They try to get a number of leaseholders to do it collectively and they represent the group. Apparently this improves bargaining power and reduces the overall cost. They are sending info packs out now and any leaseholders who sign up to fund the valuation (I guess that’s the first stage) receive a discount. The info pack is free and there’s no obligation according to the letter I’ve received.

    #4267

    Paul Ginsberg
    Participant

    For what it’s worth, I understand that Camden Council doesn’t have any “problem” extending the lease – they’re compelled to do so by law and it’s a small bit of extra income for them, so it’s just a standard piece of work. Also I imagine that the expiry dates of leases are still so far in the future that there’s no benefit in Camden dragging their feet.

    Contact Leaseholder Services and they should be able to help. In any event, once done perhaps report back so we know how you got on, and this will benefit others 🙂

    Paul

    #4268

    greeves
    Participant

    There’s also http://www.lease-advice.org/ which has lots of helpful advice.

    #4440

    joshnic
    Participant

    Wonder if this went anywhere? I am selling my flat on Regents Pl Estate which now has 90 years left on the lease and a few of the viewers have asked if I know how easy it is to extend the lease and what amount Camden would ask for. The stuff on the Council’s website basically says “get a lawyer”.

    #4441

    Wells
    Participant

    I’ve extended a lease with Westminster Council on an ex-council property so have some experience. Westminster would only countenance an extension of the lease under the statutory provisions applying to long leases, not as a matter of free negotiation. So first I had to have owned the leasehold for two years (so I had to wait), and then they would only do a 90 years extension (not for instance a 10 or 30 year extension). It may be that Camden takes the same view.

    As for what the lease extension will cost, the pivotal question is whether the lease has 80 years or more left to run. If so, the lease extension should not be more than a few hundreds or thousands of pounds + legal costs of another thousand or so. If however the lease is significantly less than 80 years then under the statutory regulations, the leaseholder has to pay half the marriage amount (which is the increase in value of the property when the new 90 lease is married to the existing lease), which may means tens of thousands. Anyway, it’s a statutory calculation and there are several easily googled websites which will indicate what the cost will come out at for your particular parameters.

    #4442

    frederickprice
    Participant

    My understanding is that you will be encouraged by the Council to use (and pay for) a lawyer and a surveyor, the latter to opine on the value of the proposed lease extension. You should also budget for paying the Council’s legal / surveying costs. So, if the actual cost of the lease extension is say £2500 (guesstimate!), there might be further costs of £5-7K when all the extras are totted up. You might be able to “do” the valuation yourself, and indeed the legals I suppose, but how would you know you are going about it the right way? Hence the reason why most people use professionals. I’m not sure if you can wriggle out of paying the Council’s costs – worth researching I would have thought.

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