In this case a high value flat was being sold with a lease of just over 70 years unexpired. The flat owner informally approached their Landlord and enquired on a premium to extend the lease. The Landlord informally put forward a proposal to extend the lease to 125 years subject to a ground rent. Under the legislation no ground rent is payable.
Myleasehold were instructed to advise the flat owner on the merits of the Landlord’s proposal. By way of a desktop valuation and taking into account the offer received for the flat, which assumed an extended lease, we advised the flat owner that the proposal was very fair, marginally below a likely outcome were the lease to be extended under the Act. On the back of our advice, the lease was extended and the flat sold.
Having taken advice from us on the likely premium to extend the lease under the Act, the Tenant was able to make an informed decision, deal with the matter informally (thus saving on professional fees) and sell the flat.