Skip to main content Skip to footer

Renewing a Lease - Advice Required

Please assist in advising if there is a way to find out how much it should be to renew our lease. We have approx 75 years left on our lease. The freeholder wants a ridiculous amount of money to renew up to 99 years. Is there any legal advice anyone can give me or is this value completely at the discretion of the freeholder?? Are there any tools or websites that could help me determine the lease renewal amount? What is the legislation around determining lease renewal values?? Property is in Morden, London.

Asked on Jan 3 2018, General in Morden | Report content

Answers (3)

Was this question useful? Yes 0 No 0

Sort by: Oldest | Recent | Highest rated

  • Will need a little more info to gauge what is a reasonable figure. Current value of the property? what you would expect it to be with an extended lease? Amount of ground rent payable currently? Proposed ground rent after the extension? (quite often it may be possible to reduce this to a peppercorn rent - nothing, but the cost of the extension will need to factor in loss of future rent). Without the information it would be hard to say but one thing I will say is that it is all about negotiation. Do not lose your cool and have a bad relationship with the freeholder. Ultimately you want something that only they can give you. Assuming that you have owned the leasehold title for two years or more you will have the legal right to purchase an extension. If you haven't owned it two years you may not get anywhere at all but in my opinion it is most wise to negotiate in a friendly, informal is the wrong word, but pleasant way to see if you can meet somewhere in the middle. Good luck!

    Answered on Jan 5 2018, Report content
  • Forgot to mention but obviously every year that ticks by is devaluing the leasehold title. I wouldn't say that there is an immediate panic but some mortgage lenders do not like short leases. Whilst it may not be a problem for you right now, it could have an effect on marketability further down the line. Don't let it drop below 60 years otherwise it will become afar more complicated and expensive task. Thanks,

    Answered on Jan 5 2018, Report content
  • Provided you have been there at least 2 years there is a statutory right to a renewal. And a procedure to determine the renewal if the landlord is not cooperative. There is lots of useful and authoritative advice at https://www.lease-advice.org/ In particular an outline of the valuation principles used to determine the price for extending a lease of a flat under the Leasehold Reform Housing and Urban Development Act 1993.

    Web reference: https://www.lease-advice.org/advice-guide/lease-extension...

    Answered on Jan 10 2018, Report content

Didn't find what you were looking for? Ask a question

More General in Morden questions on AskMe

See more AskMe Q&A about General