Please help..so stressful selling process

l_i_s_a

Does anyboy know the minimum term required by Abbey for them to lend on a leasehold flat please?
I am selling my leasehold (but with share of freehold) flat and everything had been going well until today.....

Received a letter from my solicitor saying my buyer's solicitor wants 'confirmation' that I will be extending the lease upon completion as it has *only* 75 years remaining.
This is the first I have heard of this and there was no such agreement.
Furthermore, the buyer asked about the length of the lease upon offering and then accepted it and I feel that this has been left for further along the process as a presure tactic. Either that or their solicitor has suggested this.
As the flat is share of freehold it is really just a legal technicality to extend the lease and between the 8 flats will only cost very little each for legal fees and land registry changes. This has all been explained to the buyer.

My main concern is that the lease extension could take months as we will have to co-ordinate each resident and the managing agent to do this and I an just not willing to have this held up at the risk of losing my new home when otherwise we could be exchanging soon. Some flat owners live abroad and it may be a long process.

I just wanted to know if Abbey will lend on a term of 75 years in case they try to use this factor when I reply tomorrow. I am hoping that this length is fine as I have read that most lenders require 30-40 years after end of mortgage term. This would then mean the term would be fine even if the buyer has chosen a 35 year mortgage.
Please advise as I am so stressed about this.
I just wish people could go through a sale/purchase without all these sneaky moves and then we may all be able to sleep during the months of the transaction!:mad:

thanks

Doozergirl

75 years will be fine for any mortgage lender.

Also, you have an individual lease. You don't need to get everyone to extend together, you just extend your own. Shouldn't take long at all.

As you have a managing agent, I think you just need to speak to them to arrange the legals.

l_i_s_a

Thanks Doozergirl,

It is good to hear that 75 years is fine for lenders.
I am very reluctant to get involved on this lease extension at this stage and especially as there was never any mention of this/or agreement. The buyer can extend at their leisure once they own the property in my opinion, as they will have share of freehold.
I will speak to my solicitor tomorrow. I was a bit miffed at the way they have done this and I hope they do not try to hold me to ransom on this as I have my stubborn face on!

Doozergirl

It does sound a little silly that they are asking you to extend when you are also the freeholder. It's hardly as if you will put a huge premium on your own lease extention, regardless of the term remaining on the lease

I would ask your solicitor to reassure them via their solicitor, though I suspect it's them causing the problem. Ask your estate agent to speak directly to your buyers and explain that it really isn't a problem

l_i_s_a

I agree it seems a bit silly. The most annoying thing is that the buyer initially checked the lease length and agreed it was fine as it was share of freehold and now this. To be honest I think that they are just trying their luck in the hope I will absorb the cost of the lease extension.
That is a really good idea to ask my solicitor and agent to reassure them. I will call the estate agent tomorrow also.
Thank you for all your advice and help. I hope it will work out ok.

LouiseK_2

We are in the process of buying a share of freehold flat with only 69 years in the lease remaining. We also asked for the vendors to extend the lease.

From a buyer's perspective, we were really nervous about buying a property with such a short lease. We were concerned that we would have problems selling on the property and that if there are problems (for whatever reason) in extending the lease, we didn't want to fnd out about it after purchasing the property and spending several £000,000s. You got to remember that your buyers aren't spending £20 and this is probably the biggest purchase of their lives, and so they are right to be cautious.

With our own case, the vendor declined extending the lease but did get the other freeholder/flat (there are only two flats in the house) to agree in writing that they wouldn't object to us extending the lease. We also got a quote for extending the lease ourselves (which was aorund £300 + VAT). This gave us a lot of comfort and so we were happy to proceed on this basis.