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Lease extension discrepancies

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My neighbour, a freeholder, has just been offered £30k by his leaseholder to extend a lease with only 40 years left on a 3 bed flat worth £750k. But a flat in the same road with only one bedroom and worth half that price, with also, only 40 years left, paid £60k to his freeholder.

Are such discrepancies common and if he went to the leaseholders tribunal, would the leaseholder still be liable to pay the freeholders fees?

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Anyone can agree to sell anything to anyone for any price, of course.

 

But the cost of a lease extension premium (whether on a house or on a flat) depends quite a lot on whether the leaseholder ("Tenant") has or doesn't have statutory rights, i.e. has owned the existing lease for two years or more, against the freehold reversioner ("Landlord").

 

As to fees, The First Tier Tribunal has jurisdiction to set:

a. the premium;

b. L's conveyancing fees; and

c. L's valuation fee.

 

(But not L's negotiating fees nor the cost of the FTT application/hearing)

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What you call "discrepancies" may be due to ignorance of the correct rules for statutory extension lease extension or not knowing the current market value

 

You can google search for online calculator to get the cost for statutory 90 years lease extension for leasehold flat with 40 years term left.

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