Problem selling leasehold flat with 76 years left on lease!

pastmybest

Found a private buyer very fast but their lender saying they want minimum of 70 years on lease. This has spooked the buyer who for some reason want to stick to tha lender in question.

Is this length considered to be a bad lending risk?
Do all lenders have the 70 year rule?
Are there other lenders that can offer the money?

Your help would be useful.

herbiesjp

Lenders have different criteria

But you meet the criteria with this lender don't you? They want 70 years, and the lease left is 76 years

dunstonh

What you say suggests there is no problem but often when the lease is running short it doesnt take much to get it extended back to 99 years or whatever.

spmc

herbiesjp wrote: »

Lenders have different criteria

But you meet the criteria with this lender don't you? They want 70 years, and the lease left is 76 years

I'm guessing the prospective purchaser is worried that in 7 years time he might struggle to sell.

herbiesjp

Other lenders have different criteria.

And it is a fairly straightforward procedure to get the lease extended - although at a cost

pastmybest

Thanks for all the help and I have just spoke to our solicitor and got a little more information.

It is one of four flats with owners each owning a quarter share of the freehold so, on the face of it, extending shouldn't be a problem. But our solicitor has said it can take a month or more to get the lender for each party to approve the new lease (999 years). It can then take time to get other owners to agree and sign up. Then if any owners (all other older)feel the need to talk to their solicitor or to any other party it can drag on.

So will see if the possible buyer will go somewhere else for the money.

bradrock

my friend just sold their leasehold flat with 57 years left. So there are lenders more flexible.