Lease Extensions
Lease Extension in Tottenham, London N17
The Client
Newman Webb acted on behalf of a leaseholder looking to extend their lease; they owned a leasehold flat with 75 years remaining. We provided the leaseholder with valuation advice confirming our opinion of a reasonable premium payable for a 90-year lease extension.
The Issue
After serving notice on the freeholder to exercise their right to a lease extension, the freeholder made a counter offer proposing a premium of £29,000 which was significantly higher than the offer made by the leaseholder.
Our Approach
At this point, the leaseholder appointed Newman Webb to negotiate with the freeholder’s surveyor.
The Result For Our Client
After lengthy negotiations, we agreed a premium of £14,500 for the lease extension. A saving of 50% against the freeholder’s counter offer.
Lease extension in Shoreditch, London N1
The Client
Newman Webb acted on behalf of a leaseholder looking to extend the lease on their leasehold flat. There was 70 years left on a 99-year lease.
The Situation
The freeholder offered the leaseholder an informal lease extension, proposing a lease extension back to 99 years at a supposedly reduced premium of £29,156 with a ground rent of £350 a year doubling every 10 years.
Our clients sought our advice on whether to proceed with this proposal.
Our Approach
We analysed the freeholder’s proposal which would result in the leaseholder paying a total ground rent of around £89,000 over the course of 99 years, in addition to paying a premium of £29,156. The current lease had 70 years unexpired, so the extension back to 99 years was, in effect an extension for only for 29 years.
We carried out a statutory lease extension valuation for the flat, which confirmed the premium payable was around £26,300, substantially less than that proposed by the freeholder.
The Result For Our Client
We recommended to our client that they ignore the freeholder’s proposal and serve a statutory notice to extend their lease by 90 years, which would give them a leasehold of 160 years, while the ground rent payable on the property would be bought down to a peppercorn