Should I wait 2 years or appeal to freeholder for lease extension?

by Readers Question

10:28 AM, 20th October 2016
About 2 years ago

Should I wait 2 years or appeal to freeholder for lease extension?

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Should I wait 2 years or appeal to freeholder for lease extension?

I’ve recently completed on a flat with an 87 year lease; I want to extend this lease, but should I wait for the 2 years (giving me the right to extend), or try and appeal to the freeholder and get him to agree to extend before the 2 years? Are there pros and cons?lease extension

And if I do wait for the 2 year anniversary, how soon can I get the ball rolling with a solicitor? No sooner than the 2 year date, or can I get a solicitor to have every thing prepared a few weeks sooner ready to pull the trigger on the 2 year date?

Many thanks

Edward



Comments

terry sullivan

12:11 PM, 20th October 2016
About 2 years ago

do you have to wait? i thought that was for purchase of freehold?

Gary Nock

12:35 PM, 20th October 2016
About 2 years ago

Generally you have to own a leasehold property for 2 years before you apply for a statutory lease extension of 90 years plus the original term at a " peppercorn" ground rent (nil). A voluntary lease extension can be done inside two years but usually on much less favourable terms. Waiting two years will not affect massively any premium valuation as the key milestones when it gets expensive are under 80 years when "marriage value" kicks in, and then under 60 years when it rockets. Sit tight for 2 years and then apply under statutory route. Use a good valuer and a good leasehold solicitor who knows all the crafty Freeholder tricks to try and stop you from getting it. Remember you have to pay both your own and the Freeholders legal costs.

Ms Leaseholder

16:31 PM, 20th October 2016
About 2 years ago

I'd definitely wait - what's the rush? Unfavourable terms aren't worth it, 2 years will fly & I'm no expert but aren't property values (& hence the associated costs) more likely to drop than rocket, given all the economical & political unrest & warfare.


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