Lease Extension and RPI effect on sale and marketability?Make Text Bigger
I am extending my lease and FH made offer of: 1) Premium:£10,000.00 2) GR: Adjusted to £200.00 Per Annum subject to increase every 25 years in line with Retail Price 3) Term: Additional 90 years to unexpired term (99 years from 01.12.1986) 69 years +90 Years = 159 years
Currently the GR is twice the initial rent of £75 = £150
Original lease terms:
1st 25 years – £75 “initial GR”
Next 25 years – £150 (twice initial GR)
Next 25 years – (3x inital GR)
Residue – (4x initial GR)
I want to know what the current offer will do to the marketability of the property if I sell. If I keep and try and bequeath to son will the RPI be too much of a problem in years to come as cant project that far ahead. I have 10 days to get back to them and I am not sure what to say.
I would appreciate some advice.
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