Extending the Lease on your property!!!!!!

racheljohnson

I purchased a flat 5 years ago with 63 years remaining on the lease. I'm now looking to sell, have 58 years remaining and have been told I have to extend the lease in order to sell. Enquiries made to my freeholder and they are asking for 16k to extend back up to 150years. Is this legal???? It seems an awful lot of money for something I wont benefit from, wont increase the asking price on my flat and probably wont be able to sell unless I extend it. Any advice out there on what to do next or who to turn to as I dont have this kind of cash lying around?????? Thanks

twisty

16k to add 87 years onto your lease sounds about right.

Also, the length of the lease will most definitely affect your asking price, in that if you don't get it done people are going to want a pretty hefty discount.

When you bought the flat 5 years ago, did you get it cheaper because it had a short lease?

I'm no expert but I think the amount you pay is in some way related to how many years you want to add on to the lease. Maybe you could ask him/her how much it would cost to extend the lease up to 99 years (this would be fine from a buyer's point of view)? This is what I would do at first.

The other option is to find out how much it will cost, then drop your asking price by that amount.

Doozergirl

It's perfectly legal - £16k doesn't sound steep (without knowing full details of course) although your freeholder's costs will be added.

It will cost less to extend it to 99 years but not a great deal less - ie. not directly in proportion to the number of years you reduce the extension by. Buying the freehold collectively with your neighbours may work out cheaper for you than an actual lease extension!

Did your solicitor not mention the lease length this to you when you bought the property? I'd check your paperwork - really they would have a duty of care to inform you of this and I'd be surprised if they didn't. The price you paid really should have reflected the short lease.

If you don't have the money yourself then your best option is to extend the lease as the sale is completed- your buyer's money is used to complete the transaction and they get the lease extension. You need to get going on it as it does take a bit of time and it can hold up a sale.

It's a big shock to have if you weren't aware.