Leasehold property - permission to extend

I would bite the bullet and buy the freehold......

Yes, I agree- but take care not to overpay or give in to L's outrageous demands.

As this is a project with my son and we are ready to put the house on the market, I was thinking Indemnity Insurance would be the quickest and easiest way if we could get over the problem of me having contacted the L's Agents regarding permission. I assume the cover would only be for the value of the extension not the full value of the house.

If not it will have to be purchase the freehold although I'm not sure if that could have an effect when I try to purchase the freehold of my own house from the same L.

I'm not sure if that could have an effect when I try to purchase the freehold of my own house from the same L.

No. Each transaction is independent.

Looks like the government is wanting to stop this ridiculous leasehold arrangement. About time I say!

Looks like the government is wanting to stop this ridiculous leasehold arrangement.

No, that's not true. Expropriation of assets would be unlawful, in any event, and that's certainly not what HMG proposes.

https://www.theguardian.com/money/2017/jul/25/leasehold-houses-and-the-ground-rent-scandal-all-you-need-to-knowll you need to know about Leasehold property

---------- Post added 26-07-2017 at 19:31 ----------

https://www.theguardian.com/money/2017/jul/25/leasehold-houses-and-the-ground-rent-scandal-all-you-need-to-know

If the leasehold house has 999 years lease and small annual ground rent, it may cost about 17 -18 times the ground rent to buy the freehold title and about £250 + VAT in legal expenses. Based on the FTT decision made last year :

http://decisions.lease-advice.org//app/uploads/decisions/act67/1-1000/959.pdf

If the leasehold house has 999 years lease and small annual ground rent, it may cost about 17 -18 times the ground rent to buy the freehold title and about £250 + VAT in legal expenses. Based on the FTT decision made last year :

 

http://decisions.lease-advice.org//app/uploads/decisions/act67/1-1000/959.pdf

The FTT decision is not binding law- it's not a Court, you see- and a leaseholder will almost always have to pay more than that.

would it be possible to send me a copy of the letter you sent to your freeholder, only I am in the exact same position as you were!!

your help would be greatly appreciated.

Originally Posted by Kaye2812 View Post

we had a similar problem a couple of years ago as we wanted to extend. The freeholder quoted £850 to purchase the freehold. Our lease had over 700 years left and was £5 per annum in ground rent. We replied offering £50 to purchase the freehold otherwise we would take it to the land value tribunal. We got a counter offer a week later for £175 (just below the cost of us taking it to the land value tribunal) so we accepted and now own the freehold.

If you want me to send you the letter I sent across to their solicitor and the examples of previous LVT decisions I used to argue the price I offered, then just pm me your email address and I will send it straight across.

Good luck with it all.

would it be possible to send me a copy of the letter you sent to your freeholder, only I am in the exact same position as you were!!

your help would be greatly appreciated.

Very doubtful, they've not been active on this forum for quite a long time.

oh dear i will have to think for myself then!

msto25,

Can you open this link for recent LVT decision on cost to pay for freehold title of leasehold house ?

https://decisions.lease-advice.org//app/uploads/decisions/act67/1-1000/959.pdf

Just submit your offer based on 16.67 times your annual ground rent rent plus £250 +VAT contribution to conveyancing costs and include a copy of the LVT report to justify your offer..