Lease extension for share of the freehold flat

csrivats999

Hi all - I am getting ready to sell my flat and wanted to see if someone can help me here with the below query.

I own a flat in a block that has 12 flats and each resident share the freehold.
I looked at the lease and saw that there was 64 years left on the lease.
I also note that I have rights to renew the lease for a charge of £350 (plus vat).
My question is should I renew the lease or can go ahead with the sale on the basis that the "lease renewal rights" will be transferred to the buyer as part of the sale.
Please suggest what to do as I dont want to spend money if I dont need to...
Many thanks

Fire_Fox

At 64 years the flat is virtually un-mortgageable, so you will need to extend the lease before selling or accept a bargain basement price from a cash buyer. This should massively increase the value and saleability of the flat so is well worth paying £410 for! Extending the lease could be done at the same time as the purchase but it will slow everything up as you may need all the other freeholders to sign. This might put off some FTBs: remember it's a buyer's market.
http://www.lease-advice.org/publications/

Richard_Webster

Extending the lease could be done at the same time as the purchase but it will slow everything up as you may need all the other freeholders to sign.

I own a flat in a block that has 12 flats and each resident share the freehold.

If there are 12 flats the freehold cannot literally be owned by all 12 (i.e. have 12 names on the freehold title). It could be held by up to 4 people as trustees for the others, or much more likely, through a company which is in turn owned by the 12. If a company, it is only a couple of directors of the company who will need to sign the documents.

At 64 years the flat is virtually un-mortgageable, so you will need to extend the lease before selling or accept a bargain basement price from a cash buyer. This should massively increase the value and saleability of the flat so is well worth paying £410 for!

I agree with this. Also, please understand that this is technical stuff. You may well get a buyer who doesn't understand the issue, makes an offer, and then a month or so later his solicitor points out that the lease isn't long enough for his mortgage lender - so you start again.

pastmybest

100% get it extended ASAP.

I was in the same position and it took 8/9 weeks from wanting to and then having the new lease. Can you not get a 999 year lease as I did? It makes a huge difference.