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Has anyone had any experience of renewing lease with Local Auhority as Landlord. To be specific; my question is:
1) Can you arrange lease extension with Local Authority Landlord?
ATM, I have 88years lease left and I am wanting to add 90years to the existing one. Just wondered if this can be arranged informally or must go through the solicitor.
Would really appreciate comments on this. Thanks in advance,
I doubt they'll do it informally, so S.42 Notices will need to be served.
Thank you. So much. I have written to them so i will expect they will ask me to serve s.42. Please if anyone reading this has got experience of doing this and can recommend a good solicitor. Kindly let me know. Thank you Orson.
I'm currently starting down this track with my landlord who is L&Q (London & Quadrant) who are effectively the local authority provider in the area. They have suggested both formal and informal way of extending the lease and i'm looking at the pros & cons of both.
Thank you so much. I have written to Narnet who said they will reply end of the month. I will see what options they propose. See the pros amd cons like you are cleverly doing.
Barnet LA i mean not Narnet
Yes do it formally and yes you can extend with an LA
My bro in law Iain Tenquist of TQ Property Lawyers will sort that for you
Hes the MD and owns the firm - 45 staff and buckets of experience
He does all my legal work
Jonathan Clarke. http://www.buytoletmk.com
Great thank you. Waiting for letter from LA then would proceed. Thanks for the contact as you camnot take a gamble with solicitors.
I have a couple of questions for you which should work out which way to go is best :
A solicitor will give you some knowledge bu their job to get contracts and instructions - so its possible they could make it sound difficult and complex and risky so that you use them and pay them well (not saying any recommendation won't)
I've done a few lease extensions in my time, there are websites out there which tell you how much it would cost to extend a lease of different lengths. My basic knowledge says in basic terms that there's two costs to extending a lease :
1) if you reduce the ground rent (say freeholder was getting £100pa ground and after lease extension he get's nothing, you'll need to pay a freeholder a lump sum to make up for their loss in income for rest of days - this could be circa £2000 (there are tables and surveyors use % yield like property which dependant on long term ability to get interest on money) - just like the reverse of an annuity in pensions (you have a lump sum that you trade for an income) this time you pay a lump sum to stop a a negative income.
2) adding more years to a lease - here's a link to a calculator that tells you how much you should expect to pay https://www.lease-advice.org.uk/calc/ - my limited knowledge says its law of the land, that freeholders can't charge what they like and if they try, there's a mediator called LVT (leasehold valuations tribunal) that makes a fair ruling - although time costs, legal costs and stressful - often for large amounts where leaseholder and freeholder can't agree whats fair. Most people don't know this one fact - freeholders aren't supposed to charge anything to extend a lease if it has more than 80yrs left on the lease - just the admin and legal cost registering at land registry.
Housing associations aren't ruthless landlords business's trying to squeeze every penny they can out of leaseholders - they have to be seen to be fair and reasonable and most are not for profits although they have departments staff to pay and any money they can raise from leaseholders can be used for good causes so don't like to undercharge either.
Serving a notice on a landlord is very easy and anyone can google how to do that - you simply give certain information and say i want to pay X to extend my lease, this is why with a good basic argument, the landlord has (from memory so don't quote i'm no solicitor) 2mths to reply saying we accept or no this is the correct amount because here's our case why. Then you try to agree without big legal costs.
The legal work to check a new lease and to register it at land registry isn't really that hard or long winded - a lot depends on the value of your time and that of the solicitor you're / freeholder are using - but it shouldn't be that much and it specifically shouldn't be much if it doesn't cost much other than legals to do it!
hope that helps and makes sense
regards Andrew Peers - property investor / sourcer - 07912674181
Property Redress Scheme Number 011436 NLA member 174404
.Thank you so much for your help; I cannot thank you enough. At the moment; my ground rent is 10pounds and I pay about 1100 annual leasehold charges.
It is also useful to hear from someone who has actually done this before.I wrote to the LA but just asked how much they are willing to accept without making sugggestions.
I am now expecting their reply as they promised to reply within 28days.
You took so much time to explain and clarify and the calculator would help me a great deal. I really cannot thank you enough.
A notice is basically just your contact details and a date of time when you say to them' i want to extend my lease this is how much i'm offering and this is why' (if you've owned the property for over 2yrs they have to allow you to extend). By law they have to charge you what the government set out is the right amount - this amount is dependant on how many yrs below 80yrs are left on the lease and the value of the flat itself. Adding an amount for their time in administering and the legal costs - (you might want to say in this circumstance the ground rent is £10pa so lets leave that as is (saves time, legals and money), the law states my lease is over 80yrs so no marriage costs to pay. My solicitor will prepare all the legals docs so all yours needs to do is check and agree) how about £500 for you time and admin and that of your solicitor.
The service charge is completely different thats just the freeholder managing the upkeep of the block of flats and communal parts and charging each flat a share of the cost (plus a fee for them to manage the works each year). If leaseholders want than can form a company run and owned by the flat owners, this then manages the block - that way in theory only the works that the leaseholders want to do are done and with the prices and contractors that the leaseholders want. one or more of leaseholders has to be willing to take on this work, maybe they'll need paying to do so but it can save a lot and you know the contractors won't be lose with the freeholders to bump up prices and profit split etc