Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 4 weeks ago 48
We have a flat in a modern block with 81 years left of the term. We wish to extend the lease under the Leasehold Reform Act. However, between us 10 Under Leasehold flat owners and the Freeholder is a Head Leaseholder whose term is 10 days longer than the Underleases and who hands over exactly the same total rent collected from us, to the Freeholder.
The Freeholder is the Landlord able to grant us the additional 90 year term envisaged by Statute and he is prepared to diminish the Head Leaseholders rent so that the main compensation would be payable to him, but the Head Leaseholder does not agree and the Freeholder will not proceed on this basis without this agreement.
The net result of this, we have been advised, is that the compensation payable by us will be around £30K where as the alternative approach to be adopted the compensation would be about half that. It would seem that the Act needs amendment to ensure that diminution of the Head Leaseholders rent should be the default position and that the compensation payable is then apportioned between the two landlords.
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