Lease Extension during house sale

Gillby1

Hi all,

I am currently trying to sell my flat, and have just received an offer of the full asking price, on condition of extending the lease during the sale. Can anyone tell me if this is possible, and whether there are any drawbacks to the process? I am happy to extend the lease, and would need to do so even if we don’t manage to sell.

According to the estate agent it's quite easy to renew the lease during a sale, as the solicitor will ‘just take the cost out of the equity’. But how will they establish the cost, and what sort of extension will they be asking for? Is it really that simple? And are there any conveyancing solicitors who want the job?!!

Any advice appreciated!

Thanks,

Gillby

00ec25

read this http://www.lease-advice.org.uk/

the buyer wants you to do it becuase (I assume) you have owned the flat more than 2 years and so have to right to ask to extend. A new purchaser does not immediately get that right obviously

Gillby1

Thanks, i have had a look at that website and various others, but i'm not finding the answers i need. Perhaps that's because it's such a complicated issue (and i'm going a bit cross-eyed with it all!)

I know if i was to extend the lease myself i could just contact the freeholder to start the ball rolling, but i'm not sure if there are any extra concerns if the solicitor deals with this instead.

Gillby1

Can anyone help?

niallo

We recently extended our lease, before we went on the market, and it is easy to say the solicitor will take it out of the equity, but be aware that the shorter the remaining lease the higher the cost. And it takes about 3 - 4 months to complete so this may also have an impact on your sale/purchase scenario

petelondon

Gillby, I am just in the process of extending my lease on my flat.

I bought it for £102,000 ten years ago with a lease of 65 years and only last year got the ball rolling to extend it.
Once it gets to that level of lease left, then the extension costs rocket.Although having said that, the fact the market is a lower levels will help a bit.

The actual extension of the lease cost me £17500 plus solicitors fees and the freeholders costs, another £2000, so it is a costly business but without it I couldnt dream of selling my flat. Now I should be able to get £150,000,£160,000.

I would definitely go via a solicitor as they can help negotiate downwards on the cost of the extension.

How long is left on your lease and what is the property value, will help give you an idea of what to expect.

Richard_Webster

What do estate agents say flat is worth leaving aside lease extension issue? How long is the lease in question? How much is the current ground rent (not service charge) and does this increase at all during the lease period? If so, how?

Is freeholder private individual or property company?