Lease Extension for Freeholders Query

ddh76

I live in a ground floor flat and have 68 years left on my Lease. I have 50% of the Freehold too.

If I sell the property with the freehold, then as I understand it, I don't really need to extend the lease, right? Because the buyer is simply taking everything over?

However, if I sell it WITHOUT the freehold, then I will need to extend the lease as the buyer may not be able to get mortgage without it?

Also, what are the implications for the OTHER freeholder if I extend my leasehold?

This is confusing!

Dave

Richard_Webster

If you sell your lease with the share of freehold:

1. and your buyer is getting a mortgage from Bank of Ireland, Halifax or Lloyds/C&G then you will have to extend your lease because they will not accept less than 70 years. You cannot extend your lease without the other freeholder's agreement which he doesn't have to give without you going through the expensive statutory procedure and probably paying him several thousand pounds.

2. in any other case if the buyer's solicitor is sensible he will ask why you cannot organise a lease extension now. How does he know that the co-freeholder will agree to a lease extension? You need his signature!

If you sell the lease without the share of freehold 1 & 2 above apply and the buyer's solicitor will want to know why you are not prepared to arrange transfer the share in the freehold. What do you want to keep it for? Or maybe you can't transfer it because the other freeholder won't sign? What are you hiding?