England UK

"Jim" <camdenguy@hotmail.com> wrote in message
news:1116926930.523070.115550@f14g2000cwb.googlegroups.com...

>- what are the qualification criteria? Is it living in the property for
>more than 3 years?

The 2002 act reduced the qualification to owning. The point is moot
as you qualified under the old of rule living is as main property.
But it made a big difference to BTL people.

>You also mentioned the "Commonhold and Leasehold Reform Act 2002",
>which you say will give me even more rights.

>Could you explain a bit more, please? In particular, I don't understand
>what you mean when you say "for a lease with more than 80 years left
>the marriage value part of the cost is deemed to be nil".

The cost of buying the lease is the sum of three parts (plus you pay all
the freeholder's reasonable costs)
1) the loss of value of the now extended lease (I.e the amount that
the freeholder could sell his interest to someone else for).
2) Half the 'marriage' value, which is the increased value of the
property with the new lease. For a lease with 80+ years left
this part will be nil.
3) Some other compensation costs which TBH I don't
actually understand.

>Also, what kind of money could this landlord expect? Are there any
>rules? suppose he says I can extend my lease by 99 years for Ј1
>million - is there anything I can do to prevent him asking whatever he
>wants?

There are quite specific formulas for working out the value
based upon the ground rent.
If you are unhappy with his offer you can appeal to the land
tribunal. Under point 1, 20 times the ground rent is a reasonable
figure.

Note that when you enter into the extended lease you will
agree a new 'current money' ground rent, (though if you're only
11 years into the current lease it will already be a current money
rental) that only becomes payable at the expiry of the old lease

>Thanks for any advice.

tim