Lease extension - should I go to a tribunal?
One of my flats only has about 76 years left on the lease. The property's value is approximately £245,000. I have been negotiating with the freeholder to extend the lease.
I've made some progress and the latest position from the freeholder was a premium of £15,000 with a ground rent of £25 doubling every 25 years and of course I would cover their 'reasonable' legal costs. This would give me a lease extension to 99 years total.
I has asked for a 125 year lease (as I plan to keep the property long-term), which I would much prefer as it may be 20 years before I sell the property, but the main cause of concern is with the doubling ground rent.
I have been advised, by a local law firm I have yet to appoint, that the doubling ground rent is a real cause for concern as these can be an issue for lenders. This could cause me real problems if I need to sell the property and buyers struggle to get a mortgage. My lawyer recommended that I abandon the informal negotiation and proceed with a statutory procedure. I understand that would give me an additional 90 years on the lease and a 'peppercorn' rent, though the premium could be higher.
I wanted a second opinion on this before I decide to go through the tribunal.
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