I have a leasehold flat that I am in the process of selling for £115,000. The lease will have 68 years remaining on the 28th of march this year and the landload wants £12,000 to renew it. I was more than a bit shocked to discover this and feel that it is far too much money. I have a few questions if anyone can help:
1/ Is this a normal amount to renew a lease? If not what is a normal amount?
2/ Is there anything I can do to get a lower price? At the moment I am tempted to keep hold of the flat for the next 68years and rent it out. The Lanlord only bought the Freehold in Dec 2005 and is obviously looking for a quick return.
3/ The alternative I gues is to purchase the freehold with the other leasehodlers. Who sets the price for this? Would it be the landlord again?
I feel very trapped here as i can not sell the flat unless somebody is willing to take on the lease and nobody will with a cost of £12,000 to renew it. If I pay the £12,000 it wil not considerably increase the value fo the flat.