Leasehold Tenancy - renewal

angelface

I am currently looking at houses and flats to see what we'll be able to get when we go ahead with our mortgage.

Somebody phoned today with a flat that had 69 years left on its lease. This isn't an attractive proposition for me but she mentioned something about renewing the leasehold. How much does this cost and how easy is it and what if its refused? is this common?

Jo

Robert_Sterling

A would avoid a property with only a 69 year lease since if for example I lived in the property for ten years I would then have a property with a 10 year lease.
The current owner of the property might have been well advised to arrange a much longer lease prior to selling the property.


THis is not advice it is just my opinion.

EdInvestor

You are entitled to get a lease renewal after you have been in the flat for 2 years.This costs money, how much varies depending on the area, value of the property, years unexpired on the lease.

When the lease goes under 75-80 years, it used to cause a problem with mortgage lenders, but not so much these days since the requirement on the landlord to extend came in.

https://www.lease-advice.org.uk has more advice on the cost of lease extension, which is subject to a set formula.

In some cases you can negotiate a reduction in the price of the flat to take account of the need to renew the lease, or you can demand that the vendor gets the extension sorted before you buy.Whether or not these strategies are successful depends on how desirable the flat is. In some cases a lease of this length will have no effect on the value or saleability of a flat at all.Ask the estate agents in the area.

dave49

If you intend buying it, make sure the vendor serves the appropriate notice on the freeholder before selling, then you can take an assignment with this benefit. You then do not have to wait the two years.

Julysea

Definitely get this sorted before buying. We have a maisonette with a 78 year lease which has caused us problems selling (and we're in a desirable area!) and we've had to extend beofre selling. IT cost us 5 grand to extend the lease plus over a grand in solicitor's fees and admin charges, and that seems to be fairly cheap. The people in the fl;at opposite had to pay 19,000!!!! Check it out first is my advice.