Hello
Apologies if a question of this type has been posted and answered elsewhere….Please also note that I tried to post this yesterday but the actual post is eluding me.
I have 68 years left on my current lease, and contacted the freeholders to see how much it would cost to extend to 125 years. I decided to go via the non-statutory route, and the latest is that the freeholders would be willing to extend the lease for a premium of £12,000 pounds, and for the ground rent to be increased from £100 to £150 per year for the next 25 years. I’d also be liable for their costs of approx. 1 £500.
I actually think this is quite reasonable offer, but am happy to be corrected if wiser and more experienced minds think otherwise ☺ . My main question is about another term that has been added to the offer:
“If appropriate, the service charge clauses in the lease to be modernised to provide for on account payments in advance based on estimated expenditure and provision for the creation of a reserve fund.”
I should mention that we (the flat owners in the building) formed a Right to Manage company. In view of this I would question whether this term is applicable. Also, I find it a bit strange that the clauses would be “updated” in my lease but not the other flat owners in the building – surely that’s inequitable, or does it not matter?
Thanks in advance for any guidance you can give.
Apologies if a question of this type has been posted and answered elsewhere….Please also note that I tried to post this yesterday but the actual post is eluding me.
I have 68 years left on my current lease, and contacted the freeholders to see how much it would cost to extend to 125 years. I decided to go via the non-statutory route, and the latest is that the freeholders would be willing to extend the lease for a premium of £12,000 pounds, and for the ground rent to be increased from £100 to £150 per year for the next 25 years. I’d also be liable for their costs of approx. 1 £500.
I actually think this is quite reasonable offer, but am happy to be corrected if wiser and more experienced minds think otherwise ☺ . My main question is about another term that has been added to the offer:
“If appropriate, the service charge clauses in the lease to be modernised to provide for on account payments in advance based on estimated expenditure and provision for the creation of a reserve fund.”
I should mention that we (the flat owners in the building) formed a Right to Manage company. In view of this I would question whether this term is applicable. Also, I find it a bit strange that the clauses would be “updated” in my lease but not the other flat owners in the building – surely that’s inequitable, or does it not matter?
Thanks in advance for any guidance you can give.