As a contractor I am thinking of buying a flat in the highly sought after Chelsea area of London yet I have unearthed something terrible and just wondered if you lot have heard of anything similar .. it related to leasehold properties and extending the leasehold on them.
basically I saw a really nice London chelsea flat for 650K with only 21 years left on the leasehold (100 sq/meters), I discovered from the agent that the typical cost to me to extend the leasehold for 90 years on top of the market value of 650K would be 190K !!!!! and if I do not then once the 21 years if up if I have not ratified a lease extension agreement with the landlord then you essentially 'give up' the right of owning the property which you may actually have paid the mortgage off on and the landlord then HAS THE RIGHT TO CHARGE YOU MARKET RATE RENT ON YOUR OWN PROPERTY THAT YOU HAVE SLAVED TO PAY OFF THE MORTGAGE ON FOR 21 YEARS !!!!!
Is this rip off Britain OR WHAT !!!!
There were laws introduced recently 2002 I think that give you the right after 2 years of being in a leashold property to negotiate with the landlord for a leasehold 90 year extension and if there is a disagreement then it can apparently go to a leasehold valuation tribunal but all this takes time and money.
In short home owners that are at the closing stages of a leasehold property lease on the land ie 10-20 years are the real losers so it seems and they
seem to bare the brunt of these extortionate landlord lease extenstion costs ... (and this lump sum I quoted of 190K is not the peppercorn ground rent paid over the 90 years its is an amount you have to pay upfront for the privaledge of the extenstion)...
Anyone ever heard of this ......??????? is this wideley known ??? is there a
workaround ?? help ....!!!!!! or is it just FREEHOLD TIME ?
basically I saw a really nice London chelsea flat for 650K with only 21 years left on the leasehold (100 sq/meters), I discovered from the agent that the typical cost to me to extend the leasehold for 90 years on top of the market value of 650K would be 190K !!!!! and if I do not then once the 21 years if up if I have not ratified a lease extension agreement with the landlord then you essentially 'give up' the right of owning the property which you may actually have paid the mortgage off on and the landlord then HAS THE RIGHT TO CHARGE YOU MARKET RATE RENT ON YOUR OWN PROPERTY THAT YOU HAVE SLAVED TO PAY OFF THE MORTGAGE ON FOR 21 YEARS !!!!!
Is this rip off Britain OR WHAT !!!!
There were laws introduced recently 2002 I think that give you the right after 2 years of being in a leashold property to negotiate with the landlord for a leasehold 90 year extension and if there is a disagreement then it can apparently go to a leasehold valuation tribunal but all this takes time and money.
In short home owners that are at the closing stages of a leasehold property lease on the land ie 10-20 years are the real losers so it seems and they
seem to bare the brunt of these extortionate landlord lease extenstion costs ... (and this lump sum I quoted of 190K is not the peppercorn ground rent paid over the 90 years its is an amount you have to pay upfront for the privaledge of the extenstion)...
Anyone ever heard of this ......??????? is this wideley known ??? is there a
workaround ?? help ....!!!!!! or is it just FREEHOLD TIME ?
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