Are we overlooking anything?
10:59 AM, 1st July 2020, 6 years ago
3
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Hi, we are the flying freeholders of a flat ( with 3 leased garages below) all with 59 years remaining on lease.
One of the garage tenants wishes to sell their house which includes this leased garage.
Their solicitor enquired if we would be willing to extend the term of the Lease.
Currently we receive only £20 p/a and do not consider it worth the hassle/cost to extend.
Are we overlooking (no pun) anything?
Thank you.
Shaun
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Member Since July 2013 - Comments: 754
12:37 PM, 1st July 2020, About 6 years ago
Yes, you are overlooking some things:
1. The leaseholders pay most of your valuation and legal fees;
2. They will pay you some money for the privilege of extending the lease, which is a valuable right – to them.
Your situation sounds unusual and potentially quite complex, so please take professional advice from a valuer and solicitor who have the right lease extension experience.
Visit the government website https://www.lease-advice.org/ which will give you more info on the process generally, but will probably not cover your specific circumstances, but the right advisers can guide you through it.
Member Since August 2016 - Comments: 508
8:29 AM, 2nd July 2020, About 6 years ago
I don’t know where you are located but I have used ODT Solicitors LLP in Brighton who have relevant expertise.
Member Since April 2014 - Comments: 36
10:20 AM, 4th July 2020, About 6 years ago
Herlix law also in Brighton are very helpful.
You have two options. Either you increase the ground rent to make it worth your while and charge a lower sum for the lease extension or charge a peppercorn ground rent and a high sum for the lease extension.
It might be worth asking the other lesees if they want to extend.