Freeholder wants double for lease extension and holding up my sale?

by Readers Question

8:27 AM, 18th March 2016
About 3 years ago

Freeholder wants double for lease extension and holding up my sale?

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Freeholder wants double for lease extension and holding up my sale?

I am in the process of selling my flat and extending the lease in the deal, for my buyer to get a mortgage.greedy

I have had a surveyor who values the lease extension at £27,000. The Lease Advisory Service calculates it between £26,000 and £30,000. The freeholder insisted we serve notice and has come back with a figure of £50,000. My solicitor was shocked!

The buyer is keen to push the sale through as it has taken 4 months so far. My solicitor advises me not to complete the sale without knowing the final figure to be paid on the lease extension (The agreed sale price caters for me to pay for the lease extension).

My buyer wants to complete and take over the negotiations and for me to lodge £50,000 with her solicitor and for documents to be drawn up that they will return any excess to me.

I have told my solicitor that I am happy to lodge £27,000 with the buyers solicitor with a proviso that if the negotiations are over £28,000 that we go to tribunal to settle the matter. This could take up to 4 months (2 months obligatory negotiation period and possibly 2 months in the queue for the Leasehold tribunal.

Does anyone know of a way to complete the sale and protect my interests? I am uneasy for someone else to negotiate on my behalf, when that could cost me up to £23,000 extra!

I also do not want to loose the buyer in the process.

Any suggestions?

Julia



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