Process for extending a short lease on an investment turnaround flat.

Edtough

Hi All,

I am looking to bid on an investment flat which is going to auction. This flat has a very short lease though (about 25 years left), so I would obviously seek to extend the lease once I purchase the flat.

First of all, before the auction, who do I speak to to find out how much extending the lease would cost? And secondly how long is the extending lease process; I plan to turn this flat around in no longer than 6 months, so don't want to be caught out with a lease extending process that's going to take longer than this?

Thanks in advance

Ed

BitterAndTwisted

As a new purchaser you will have to own the flat for a certain length of time (two years?) before you can apply to extend the lease. The shorter the lease the more expensive it will be. This does not sound like the sort of investment property you want. Find another.

Richard_Webster

As a new purchaser you will have to own the flat for a certain length of time (two years?) before you can apply to extend the lease. The shorter the lease the more expensive it will be. This does not sound like the sort of investment property you want. Find another.

I agree. It is definitely a 2 year wait until you become entitled an extension and then the process can take some months..

It will be expensive enough to extend the lease anyway. If the freeholder thinks you are desperate to turn it round and sell it then he will ask for even more....

Edtough

A 2 year wait, really? Thanks for warning me.

G_M

The two year wait is until you have the right to insist on an extenson.

There is nothing to stop you and the freehlder agreeing to extend it earlier - though as others have said the freeholder is unlikely to agree uness you make it worth his while...........

Edtough

Oh I see. So it is worth contacting the freeholder prior to the auction and negotiating? And I guess I would need something official from him in writing before bidding?

Th property needs full renovation/modernisation; it is unlikely anyone but a developer would be interested in the property anyway, particular since it is going to auction.

G_M

Edtough wrote: »

Oh I see. So it is worth contacting the freeholder prior to the auction and negotiating? And I guess I would need something official from him in writing before bidding?

Th property needs full renovation/modernisation; it is unlikely anyone but a developer would be interested in the property anyway, particular since it is going to auction.

I doubt if anything you get in writing would be binding. Check with your solicitor (you are checking the Title etc with your solicitor before bidding aren't you?).

Edtough

This is the problem then; I cannot guarantee that I will be able to extend the lease in my proposed 6 month turnaround time, even if I come to an agreement with the freeholder.

The Land Registry "Official Copy of Register of Title" I have seen as it is available in the downloadable legal pack; all seems correct.

G_M

Edtough wrote: »

The Land Registry "Official Copy of Register of Title" I have seen as it is available in the downloadable legal pack; all seems correct.

If you think that is all that is involved in checking the Title, then you definately need to use a professional!

And I speak as someone who regulary suggests DIY conveyancing on this forum and have clashes with solicitors on the subject here.

But I would only recommend DIY conveyancing where the person invlved has a good understanding of what's involved (you clearly don't), on freehold rather than leasehold properties (it isn't), if leasehold then where the lease is very straight-forward (it isn't), where the land is Registered (it is) etc etc.

My advice now? Forget the property. But if you choose to continue, consult a solicitor first.

Edtough

Yes I see your point and agree regarding the conveyancing, and though I have looked into DIYing it, I wouldn't in this particular case for the same reasons you have given.

Having not bought at auction before, I don't know when a solicitor becomes involved? So you suggest getting a solicitor to view the legal pack? Am I right in thinking, some of my solicitors work has already been done, since the legal pack already contains
"register of title",
"fitting and contents form",
"property information form",
"leasehold information forms",
"sellers/disclosable interest questionairre,
Death certificate of proprietor,
Detals of the current lease
and Environmental report