How much to charge myself for lease renewal?
I own a 1 bed flat in Walthamstow that is part of a converted house, with one other flat above. As part of the sale, in 2003, I gained the freehold for both properties. The lease agreement for both flats now has 74 years to go.
My flat was sold on a lease basis, so I have both the lease and the freehold. My question is, as freeholder, do I have to pay my self the going rate to extend the lease, or is it possible to do this for a nominal fee, say £1?
Also the owner of the flat upstairs has not addressed the fact that the lease is dwindling – should I suggest we renew, or do I wait for him to say so? Obviously the longer it is left, the more expensive it will be for him, and possibly me?
Thanks
Jo
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Member Since July 2013 - Comments: 1266 - Articles: 1
8:01 PM, 28th February 2014, About 12 years ago
It is true, the reason it does not apply in your case is that the freehold is in joint names with another person. Essentially the ownership cannot be identical. For example if you were to buy out the other freeholder then the lease would no longer exist as you cannot grant yourself a lease. Hence why, in the thread I referred to, the freehold and leasehold were put in the names of husband and wife respectively not in either name solely or their joint names for both.