Dear *****, thank you for your response.
No, I have no idea why they offered this - that's why I'm so confused (I did not expect this).
This is what the letter says:
"I am pleased to advise that our clients are willing to offer you an extension on the following terms:
1. No lease extension premium payable
2. New lease of 99 years from now
3. Your annual ground rent to be £300, reviewed every ten years with reference price index (NB - at the moment I pay £75/year)
4. No landlord's valuation costs
You would still be required to pay the landlord's legal costs for drafting of the new documents. You will also be responsible for LMP administration costs of £292 (incl VAT)."
This is it - "LMP" is the freeholder's agent (I pay ground rent to them).
Thank you very much.
I would say around £180,000-£190,000
Thank you very much, this is very useful.
Just to clarify - it is my statutory right to have the lease extended BY 90 additional years? So if I went with the agency, the cost would be around £7.5k (as you said depending on the valuation) but it would be extended to 74 + 90 = 164 years?
Is it possible that they would only offer to extend the lease to 99 years or 125 years? In their initial communication the agency mentioned that I have the right to "force the freeholder to sell me a lease extension of an additional 90 years", but they do not mention if they aim for this length. I am wondering if the cost for extending the lease via the third-party agency would be the same for extending the lease to 99 years or 125 years or 164 years... (or more expensive with more years added - if this makes sense).
Do you know if the value of the property would differ with the lease length of 99 years compared to 164 years? Or is this something for an estate agent to inquiry about?
And lastly, if I decide to accept the freeholder's terms now and then request the lease extension in four years time (when the lease will go down to 95 years), would the estimated cost be around £6,500? Or would that be cheaper? (Cheaper than if I waited another 20 years or so)? It's not clear from your answer if that cost would refer to the subsequent extension in 20 years time or anytime before the lease drops below 80 years.
Thank you very much for your answer - this is very helpful.
I have the funds to extend the lease now; may I ask, if you were in my position, what would you do? What would be your preference?
And lastly, the freeholder stated that I would be responsible for covering the landlord's legal costs - is there any estimation how much to expect? Is there any set or standard fee that they can charge me or does it really depend on individual circumstances?
Thank you very much, this answers all of my questions. Once again, I really appreciate your help and wish you a very nice rest of the weekend.