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    • slw26
    • By slw26 19th Apr 17, 4:52 PM
    • 1Posts
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    slw26
    Extending the lease on freehold property?
    • #1
    • 19th Apr 17, 4:52 PM
    Extending the lease on freehold property? 19th Apr 17 at 4:52 PM
    For my property, I own share of the freehold with the other flat who are in the process of selling. The new buyer wants to extend the lease alongside their purchase, and the existing neighbours are not prepared to deal with it.
    I need to confirm whether I have any objections to enter the lease extension to assist the new buyer (who's lease is 70yrs and quite short)

    The new buyers solicitor has suggested to act for both of us as co-freeholders, but I am unsure as to my position and the financial implications. Basically, why should I be somewhat forced to extend my lease also and have to potentially pay a significant amount for it, when I am not selling? Is there any benefit to me extending also? Surely the new buyer is just trying to save money by co-applying??
    Also, they are wanting to complete the extension of the lease immediately on completion of the purchase, so this has come out of the blue.
    Any advice welcomed to aid my confusion! Thanks
Page 1
    • eddddy
    • By eddddy 19th Apr 17, 6:07 PM
    • 4,934 Posts
    • 4,586 Thanks
    eddddy
    • #2
    • 19th Apr 17, 6:07 PM
    • #2
    • 19th Apr 17, 6:07 PM
    Presumably, your lease has 70 years remaining as well.

    The new buyers solicitor has suggested to act for both of us as co-freeholders, but I am unsure as to my position and the financial implications. Basically, why should I be somewhat forced to extend my lease also and have to potentially pay a significant amount for it, when I am not selling?
    Originally posted by slw26
    What significant amount do you mean? The solicitors fee?

    You could try saying that you agree to both leases being extended, if the buyer pays all the solicitors fees. (Doing 2 identical lease extensions is not much more work than doing one.)


    Is there any benefit to me extending also?
    Originally posted by slw26
    You'll need to extend the lease before you sell, so why not do it now?

    Surely the new buyer is just trying to save money by co-applying??
    Originally posted by slw26
    What's wrong with saving legal fees by extending both leases at the same time?

    Also, they are wanting to complete the extension of the lease immediately on completion of the purchase, so this has come out of the blue.
    Originally posted by slw26
    The buyer probably needs to extend the lease on completion in order to get a mortgage.


    Essentially you would be 'shafting' your co-freeholder by refusing to extend the lease. You might be 'shafted' back when you come to sell - your co-freeholder might similarly refuse to extend the lease.

    Agreeing to the lease extension now means you can't be 'shafted' later.
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