Extend Your Lease guide discussion

jamels2 wrote: »

another person has said you can always extend at the point of sale, at the buyers cost, so wait til if you sell.

That would be an informal arrangement. I would absolutely not rely on that. You would be at the mercy of your freeholder.

Your freeholder could ask any price they want and any terms they want - or just flatly refuse to extend.

If the freeholder knows you need a lease extension in order to sell - they massively have the upper hand in negotiation.



Perhaps a better approach is to start the statutory lease extension process 6 to 12 months before you intend to sell. That way, if you need to borrow money to do it, it would only be for a few months.

jamels2 wrote: »

good point eddy i think you can also assign the s42 notice to a new buyer so they get statutory terns?

Yes - if that's acceptable to the buyer, and there are enough years on the left on the lease to get a mortgage without the extension.

But some buyers will be deterred, and most would expect to get a bargain, because of the extra the hassle, the risk and the uncertainty about what the extension will cost.

Hi,

I've put an offer in on a property with 87 years lease and ground rent £120 p.a.

The vendor cannot renew the lease because he hasnt stayed there for two years but has assured me I wont be paying astronomical figures if I want to renew it: £6-8k.

Is this reasonable? Any costs I have to further provision for in my offer?

Hi can anyone advise on this?

Lease extension agreed with landlord - 90 years on top of current lease of 80 years, small increase of ground rent from 150 to 175 per year

Basically all terms of the lease remain the same apart from this

Current lease says:

Within one calendar month after such document or instrument as in hereinafter mentioned shall be executed or shall operate or take effect or purport to operate or take effect to produce to the lessors solicitors a certified copy of every transfer mortgage or legal charge (including any statutory notice receipt or release of any charge or notice or deposit with a bank) of this lease or the flat or any part thereof and also every underlease of the flat for more than twelve months and every assignment of such underlease and also every probate letters of administration order of court or other instrument effecting or evidencing a devolution of title as regards the term hereby granted or any such underlease as aforesaid for the purpose of registration and for such registration to pay to such solicitors a reasonable documentation fee in respect of each such document or instrument so produced not being less than twenty pounds (together with value added tax a prevailing rate)

NEW document has a clause which says:

The tenant will within one calendar month next after any absolute transfer assignment charge of devolution of his interest under this present lease in the premises or any part thereof give notice in writing of such transfer assignment charge or devolution and pay to him such reasonable fee. The clause shall replace [x] of the original lease

A few questions please:

- Is this ok to sign?
- I am concerned about the reasonable fee element - what does that mean?
- My solicitor says the fee would also need to be paid by the incoming buyer - but where does it say this?

Please any advice appreciated.