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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70417
Experience:  Over 5 years in practice
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Am I getting a raw deal - I have a leasehold property, 4 bedroom

Resolved Question:

Am I getting a raw deal - I have a leasehold property, 4 bedroom house detached, valued approximately £230'000, 74 years remaining on lease. When i moved into the property in 2005, i got a quote of £3,000 to buy the freehold, but didn't have any spare money - this year i asked for a quote and they now want £10,700 to buy the freehold - is it worth taking them to a tribunal - i also had to pay a administration charge of £150 to get the quote.
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

How much is the ground rent?

Have you had the freehold independently valued?

How much do they want to extend the lease?
Customer: replied 3 years ago.

My ground rent is £134 per year


I haven't had my freehold independently valued


I do not want to extend the lease, i only want to buy the freehold

Expert:  Jo C. replied 3 years ago.
Thanks

At some stage, you are going to have to extend your lease otherwise the property becomes unsellable and mortgageable within the next 10 years.

So you may want to get a professional valuation on your lease.

The formula for calculating the cost of a lease extension is extremely complicated although there are some lease calculators which will give you a rough estimate such as this one

http://www.fridaysmove.com/mortgage-lenders-and-short-leases/16245

armed with that, you are then in a position to decide whether you want to buy the freehold or not

At the same time, you need to get a valuation for the lease purchase from an experienced valuer who knows about valuing leases.

Once you have that you will be in a better position to know whether what you are being charged for the lease is reasonable or not reasonable.

Armed with that you can then decide whether you want to go to the Leasehold Valuation Tribunal to decide whether the price is fair or not but if the price is deemed to be fair, you can end up paying the tribunal costs.

Ultimately, if you are going to take this to the Tribunal you are going to have to get your own valuation done

Can I clarify anything for you?

Jo
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