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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10344
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I am having trouble with the valuation my freeholder is giving

Resolved Question:

I am having trouble with the valuation my freeholder is giving to extend my lease .
Where do I stand if I think this figure us way to high .
I have negotiating but I have had my offer rejected twice .
I desperately need advice in what to do next
Submitted: 2 years ago.
Category: Law
Expert:  Aston Lawyer replied 2 years ago.
Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
Could you please confirm that you have owned the Flat for 2 years or more?
I take it that you are trying to negotiate a price on an informal basis, and you have not served any Official Notice on the Freeholder that you wish to extend your Lease?
Have you taken advice from your own Surveyor?
I look forward to hearing from you.
AL
Customer: replied 2 years ago.
Yes I've owned the property for 15 years. So far it has just been informal negotiations.
I have not taken any advice from a surveyor
Customer: replied 2 years ago.
Any chance of an answer
Customer: replied 2 years ago.
Relist: Other.
No reply
Expert:  Aston Lawyer replied 2 years ago.
Hi Neal,
Sorry for delay!
Either way, you need to get in touch with a specialist Surveyor to advise you how much you should pay, and if necessary, to negotiate the price on your behalf.
Normally, Freeholders will be happy to negotiate on an informal basis with your Surveyor. If an agreement can't be reached on the Price, then you would need to serve formal Notice under the Leasehold Reform Housing and Urban Development Act 1993.
Although this procedure would delay matters, in that it is quite cumbersome ( each party has a certain length of time to reply to the other's Notices), the Freeholder has to agree a Price based on the current value and can't therefore "try it on" and charge more for the Lease extension than they should.
I hope this assists you and answers your question.
Kind Regards
AL
Customer: replied 2 years ago.
In your opinion what would be a reasonable price for a lease extension on a property valued at aprox £8000 with 61 years remaining . Current ground rent is £35 per year . They have quoted me £11150 plus costs. I think is totally unreasonable
Expert:  Aston Lawyer replied 2 years ago.
Hi,
Do you mean £80,000?
AL
Customer: replied 2 years ago.
Yes sorry typo
Expert:  Aston Lawyer replied 2 years ago.
Hi Neal,
Thanks.
You should be paying between £8-9,000 plus the Landlord's legal fees which are likely to be approx. £750 plus VAT.
I hope this helps.
Kind Regards
AL
Customer: replied 2 years ago.
This is the quote I got, do you think I have a case to get a lower figure
Dear Mr Taylor, 15 Aug 2014
Re: 17 Sycamore B77 5HB
Lease Extension – Subject to Contract & Without Prejudice
Further to previous correspondence we are now able to provide the terms required by our client, Denetower Limited, for a 125 year Lease are as follows:-
A premium of £11,150.00 (Eleven Thousand One Hundred and Fifty Pounds)
Exclusive of our legal costs of £845.00 (+ VAT if applicable)
Exclusive of valuation and processing fees of £575.00
A new ground rent of £150.00 per annum to increase every 20 years by the higher of the increase in the Retail Price Index or twice the current ground rent as at the month immediately preceding each rent review period
Costs recovery clause should the Landlord wish to pursue costs in respect of any future breach
Expert:  Aston Lawyer replied 2 years ago.
Hi,
They are trying it on big time!
Under legislation, you are entitled to an additional 90 years to your existing Lease (giving you 151 year Lease) at a peppercorn rent (which is zero rent). The figures I quoted you were on the basis that you would be getting this additional 90 years.
For the Lease extension they have quoted, you should be paying less than 8-9K and I wouldn't recommend you go down that route anyway, as the new ground rent is likely to put potential Buyers off as and when you sell.
I would get in touch with a Surveyor if I were you!
Kind Regards
AL
Customer: replied 2 years ago.
We have now asked for them just to extend it by 38 years ,giving us 99 years . I don't understand why the ground rent increases so much , surly we are doing them a favour by extending the lease as they will recieve a bigger figure then if we were just to carry on paying £35 over 61 years aprox £2000
Expert:  Aston Lawyer replied 2 years ago.
Hi Neal,
They want to charge you more rent so they receive more money from you and their Freehold interest is a lot more valuable as and when they decide to sell their Freehold interest!
Kind Regards
AL
Customer: replied 2 years ago.
Cheers ***** ***** thanks for your help
Expert:  Aston Lawyer replied 2 years ago.
Thanks.
Good luck!
If I have assisted, I would be grateful if you could leave positive feedback.
Kind Regards
AL
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10344
Experience: Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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