Extension of lease

This topic contains 15 replies, has 8 voices, and was last updated by  frederickprice 3 weeks ago.

Viewing 16 posts - 1 through 16 (of 16 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

    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.

    #4639

    CLFUSER
    Participant

    I’d also be interested if anything came of the Leasehold Solutions at a collective extension initiative. And indeed if anyone has actually extended their lease with Camden. Presumably, Camden leases have a similar structure so extending one would be similar to extending another in terms of process and structure of extension legal documents.

    #4661

    greeves
    Participant

    We’re in the midst of the process. Camden has come back with a counter offer and negotiation is ongoing. I’ll report back once it’s been concluded. Personally, paying for a company to do this is worth it. I don’t have the time to do it myself though I know one can. It’s a bit complex!

    #4662

    frederickprice
    Participant

    Hi, just to say I am close to concluding a lease extension from Camden on my one bedroom flat through my own professionals (I had initiated this before Leasehold Solutions got in touch). The total cost including lease premium is £6,563.70. I started the process last year, with my survey taking place in January of this year. I have paid for my lawyer / surveyor, those for the Council, and disbursements. Touch wood, it has seemed fairly painless so far, if you are prepared to pay and be patient. The benefit is that you get a 90 year lease extension, so future proofing the property in terms of title.

    #4811

    CLFUSER
    Participant

    Very interesting and helpful to hear from those currently in the process. Seems like there is an element of “negotiation” which I would have expected with a private freeholder but was not sure if it would be the same with the council as the freeholder – was hoping that they might just have a prescribed formula.

    Still with over 100 years on my lease and not looking to sell the property I don’t have to extend the lease right now, but hoping it might be cheaper to do it now rather than when/if circumstances are forcing my hand. Also, still wonder if anything came of the collective initiative by Leasehold Solutions.

    • This reply was modified 3 weeks, 5 days ago by  CLFUSER.
    #4838

    A question to Frederick Price. What duration was your lease at when you initiated the process of extension?

    #4841

    joshnic
    Participant

    There is a bit on the process on the Camden website at

    https://www.camden.gov.uk/ccm/content/housing/council-tenants-and-leaseholders/homeownership/extending-your-lease/

    I have been inundated with solicitors leaflets and direct mail as I imagine most of the properties were sold off under Thatcher at the same time and so are approaching the 80 year mark after which the cost of extending goes up considerably. Council renewals are also supposed to be the most straightforward so easy money for solicitors as the negotiations are very limited.

    Mus admit I probably won’t use one of these ambulance chasers.

    Reds

    #4847

    frederickprice
    Participant

    My lease is/was at 103 years. Incidentally I forgot to mention the initial cost of my own surveyor – so add £1000. Ouch!

    Regards, Frederick Price.

    #4848

    Hi,
    Just so I’m clear. Your lease is 103 years and it is costing you £7536.70 to extend it a further 90 years to 193 years?

    #4849

    frederickprice
    Participant

    Yes! Although it hasn’t “completed” yet (imminent).

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