I have been asked to give advice for two separate clients as to the respective premiums to extendthe leases each is proposing to buy with a view to taking an assigned notice claiming the 90 year extension under the Act prior to completion.
In both cases, the clients were known privately to the vendors who had both formerly marketed their flats within the year (but withdrawn.)
Client A, already a leaseholder in the building, agreed a price about 28.5% below the last listed asking price although built into the agreed price was a discount to not gain vacant possession but allow the current vendor lessee to remain in the flat for the rest of her natural life paying an annual rent.
Client B agreed a price approximately 11% below the last listed asking price having been introduced to the flat via a mutual friend of both the vendor and purchaser.
Both buying clients no doubt perceive they have agreed a good price in a market where sentiment is at the moment nervous (recent SDLT increases, Brexit and ‘that Election result’.) The vendors equally no doubt letting out a huge sigh of relief that two solid purchasers have been found and to which there would be a saving of not having to pay additional Estate Agents commission.