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Aston Lawyer
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10635
Experience:  LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
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I am own the freehold property which is

Resolved Question:

Hello - I am own the freehold for a property which is divided into two flats. The owner of Flat 2 has asked to extend the lease which runs for 99 years from 25-Dec-1988.
How do I go about valuing a lease extension and what is the process?
Also I assume there are costs associated with organising this - who would meet these, the leaseholder or freeholder or do we share them?
I also understand that there may be two options - renewing to 99 years or beyond, the latter meaning that ground rent no longer needs to be requested?
And finally what, if any, pitfalls do I need to be aware of?
Best regards,
Fiona
Submitted: 1 year ago.
Category: Property Law
Expert:  Aston Lawyer replied 1 year ago.
Hi Fiona,Provided your neighbour has owned their flat for 2 years, they are entitled to a Lease extension being an additional 90 years to the existing term (current Lease expires in 2087, so the Lease extension would mean their Lese now would end in 2177), at a peppercorn rent (meaning nil rent).A specialist Surveyor would need to be instructed by you to calculate the cost, which is calculated looking at the value of the Flat, who how many years are left on the Lease and how much rent is currently payable.Your neighbour is responsible for paying your Surveyors fees if they wish to proceed, and a Solicitor will need to be appointed by you to draft and execute the Lease extension. Again, your neighbour will be responsible for paying your Solicitors fees.As I have said, your neighbour is only legally entitled to a Lease extension of an additional 90 years. However, there is nothing stopping you both agreeing a different term with or without rent being paid. The cost of any different Lease term can be advised by your Surveyor.There are no pitfalls for you- you will get a nice lump sum, but won't receive any additional yearly rent if you proceed with an additional 90 years at a peppercorn rent.I hope this assists and sets out the legal position.Kind RegardsAl
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Customer: replied 1 year ago.
Aston - I was expecting a much longer, more embroiled response but I am very pleased with the clear explanation and quick response time.
Many thanks,
Fiona