Found a dream Flat, but lease putting me off, please help

jackieblue

PJD wrote:

Cheers Jackie -
Yes, I do remember you & the conversation, I actually asked on the other thread if you could give me the companies contact info, quite a while after the thread had died.. - I thought I'd catch you again here!

Thanks for the info

Hi,
The only reason I didn't give you the company name is that they are the managing agents (acting on behalf of the freeholder (I think they are the freeholder)) for my particular property so wouldn't have a figure for you. They aren't valuers at all.

I can't remember from other posts - have you contacted the Managing Agents or Freeholder directly and simply asked for the figure ?

All the best.
Jackie

jackieblue

Imelda wrote:

Hi all,

I bought a flat last year with about 80 years on the lease, I am intending to sell in about 2 years time, would you suggest that I get it extended before I sell (and would this give me a better chance of selling at top asking price?) or wait until I am selling and discount the price of the flat accordingly?

Imelda,
If they allow you (they have to allow you once you've owned it 2 years, but some allow it before the 2 years), and it's still over 80 years then I would get it done if it's a reasonable figure. It just makes you a stronger seller. There are some earlier posts on MSE where some say don't worry as a lot of buyers don't query it (but as more and more of us read forums such as these, we're becoming wiser). If I were you it would have to depend on what it would cost you, whether there's any rush because it's 80 and a bit years still and whether they would allow you to extend now.

Cheers
Jackie

Worried

I would say try to extend before it drops below 80 whether yo've been there two years by then or not, as it is cheaper to extend before it drops below 80, as you don't have to pay 'marriage value'. You don't have the legal right to the extension until you've been there two years though.

Imelda

Thanks Jackieblue and worried,

I have just checked my papers and it was 80 years in April, you're right about these forums, I wish I had joined earlier.
My new plan is to save up the money and extend in 2 years when they legally have to allow me to do so, hopefully gaining some of it back on the price of the property. Thanks again.

Worried

You might have no problems selling with a 78 year lease, but wise to put the money by incase you do need to extend if you encounter buyer resistance. Marriage value hopefully should be minimal on a 78 year lease, but shame you didn't know about all this before. I think it's unlikely the freeholder would have granted you the extension before you were entitled to it, if he knew he was about to be entitled to marriage value if he made you wait, don't know if that makes you feel any better! Good luck.

chikoo77

Thanks everyone for putting in your views.
Another thing i would like to know is, can the owner of the flat extend the lease by another 30 years or so to make it 99 years again?
will it cost less than extending by another 100 years ?
do you still have to be in the flat for two years before you can have a lease extension done?
And, is there no way the owner can extend before two years even if the freeholders are happy to do so ? i.e is it a strict legal requirement to wait for 2 years?

Worried

You can extend beffore 2 years if the freeholder is willing. Don't think the extension has to be another 90 years, you can extend by less and I think it is less expensive to do so, but don't quote me on it!