Funding new lease and remortgaging

richardw

There is a large amount of equity in my flat and I need a new longer lease from the freeholder before I move in about 2 years time.

Is it possible to get a new lease and a remortgage through the same solicitor, with funds from the remortgage paying for the new lease costs, or do you have to get the new lease, pay for it and then remortgage?

herbiesjp

Yes, you can re-mortgage and use the funds for the lease extension.

richardw

But do you have to pay for the lease first? Or is a period allowed until the remortgage is done?

herbiesjp

No - you can raise the funds, and then pay for the lease extension.

However, as soon as you have drawn down the extra funds you are paying interest on it (unless you offset straight away). So you may want to get it all set up but only draw down the funds once the lease extension has all been sorted.

richardw

The new lease would have to be in place first because the remortgage would have to be based on the value of the property with the new lease, so there would be a period where the lease had been granted and the remortgage is not yet complete, so how do you finance this gap?

herbiesjp

Can you provide the figures?

richardw

Not a case of figures, just interested in how this may work and how a solicitor would do this.

Yes agree there has to be enough equity in the first place though.

herbiesjp

richardw wrote: »

There is a large amount of equity in my flat and I need a new longer lease from the freeholder before I move in about 2 years time.

Is it possible to get a new lease and a remortgage through the same solicitor, with funds from the remortgage paying for the new lease costs, or do you have to get the new lease, pay for it and then remortgage?

Sorry - in the original post you do not mention equity is a problem.

But without the figures, it will be difficult to come up with a solution on how to fund.

richardw

Assuming there is enough Equity, how could this work?

herbiesjp

Some options include:

re-mortgage
loan
bridging
second charge

Without knowing the figures I can't say which one would work, or how each would work.

If you come asking for help on the board, the ones who are trying to help need something to work with. If you cannot provide more information the responses only going to be limited.

richardw

richardw wrote: »

do you have to get the new lease, pay for it and then remortgage?

Is the question.