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Madhu Pal
Madhu Pal,
Category: Property Law
Satisfied Customers: 462
Experience:  Solicitor at HPLP Solicitors
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Is it possible to extend a lease on flat when there is 12

Customer Question

is it possible to extend a lease on flat when there is 12 years remaining on the lease? what would be the charges to do so?
JA: What steps have been taken so far? Has any paperwork been prepared or filed?
Customer: allsop auction . i do not know
JA: Where is the flat located?
Customer: nw4
JA: Anything else you want the Lawyer to know before I connect you?
Customer: how do you charge for your advise?
Submitted: 6 days ago.
Category: Property Law
Customer: replied 6 days ago.
Tenure
Leasehold. Held on a lease for 71 years from 29th September 1962 at a current ground rent of £35.00 per annum. A section 42 notice has been served to the freeholder by the seller and the benefit of this will be assigned to the buyer on completion.By Order of
Executor
Customer: replied 6 days ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer: replied 6 days ago.
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Madhu Pal replied 6 days ago.

Good afternoon, has the freeholder responded to the S.42 yet?

Customer: replied 6 days ago.
not as far as i know.
Expert:  Madhu Pal replied 6 days ago.

The answer to your question would depend on the freeholder. It is possible to extend the lease term regardless how many years are remaining - it just means the premium for doing so would be far higher. However as long as the freeholder agrees then this is fine.

Customer: replied 6 days ago.
what is the cost implications to extend the lease?
Customer: replied 6 days ago.
can the free holder refuse to extend the lease?
Expert:  Madhu Pal replied 6 days ago.

The costs involved would be the cost of the premium - i could not advise you of this because various factors are involved so you would need to obtain an independent valuation in respect of this - the cost of the valuation is anywhere between £300-£800. It is advisable to have this done so that you can counter offer what the freeholder puts forward should it be considered excessive.

Then it will be any legal fees - generally between £1-£2k.

The freeholder could refuse to extend the lease - but very very unlikely to refuse as it is in their interest to extend.

Customer: replied 6 days ago.
Could the lease extension cost in the region of £25k-100k? ( The online calculator states that it can not quote for a lease extension on a property with less than 50 years . )Would it not be in the freeholders benefit not to renew the lease since they then can take possession of the flat after the remaining 12 years left on the lease?
Expert:  Madhu Pal replied 6 days ago.

It is possible the extension could cost in the region of £250£100k.

The freeholder could take possession yes, but he would have to serve you notice of this and then provide two months for you to serve a counter notice to extend it. Unless the legal formalities are followed he cannot just take automatic possession.

Customer: replied 6 days ago.
is 250 k a top figure? is there any guidlines to the amount he can charge?
Expert:  Madhu Pal replied 6 days ago.

There are no set guidelines other than the online calculator - which as you said cannot quote on less than 50 years. This is because it would be assessed on a bespoke basis dependent on numerous factors.

Customer: replied 6 days ago.
what factors is this calculated by? how could determine the costs ? what would be the maximum they could charge?
Expert:  Madhu Pal replied 6 days ago.

Remaining term, value of the property, market rate etc etc. There is no set maximum - which is why a valuation is strongly recommended to get an accurate idea of what it should cost. I cannot advise you of that.

Customer: replied 6 days ago.
the shorter the term the more they can charge?
Expert:  Madhu Pal replied 6 days ago.

Yes