Wish to sell, lease question.

michael432000

I own a one bedroom converted flat.

One of 4 converted flats in one house.

I wish to sell.

Lease is in the low 60’s and the landlord/freeholder wants £15,000 per flat to extend the lease.

I have no money so would sell with a condition that the new owner can extend for £15,000.

The guy downstairs is talking about obtaining the freehold.

I’m totally ignorant about all of this.

Q1. Any good links to information on leasehold property so that I might understand it?

Q2. Does £15000 (each) sound reasonable?

Q3. Should I go ahead and sell or think about this idea to obtain the freehold?

Thank you.

dazeruk

With out knowing the period the lease will extended to, it's impossible to know if the £15,000 is reasonable or not.

You will find it difficult to sell with a 60 year lease. Most mortgage companies will want 70 years or above. How long was the lease when you purchased the property? I think you have to have been a leaseholder for 2 years before you can extend the lease.

You don't obtain the freehold, you obtain a share of the freehold. You will set up a management company that holds the freehold and then each lease holder will get a share in that company. The responsibility of repairs, insuring the building etc will then be passed to the freeholders.

You will still have a lease, this is what a mortgage is taken against. So you will still need to extend the lease even if you get share of freehold.

http://www.leaseholdlife.info/share-of-freehold

http://www.fridaysmove.com/leasehold-vs-share-freehold/256

Yorkie1

Not quite what you asked, but as mentioned above, you have to be the owner of the lease for 2 years before you can start proceedings to extend it. Therefore you should start the proceedings before putting the place on the market, otherwise the purchaser will need to wait a further 2 years - by which time the lease is 2 years shorter and the cost a whole lot more for them.

michael432000

I bought the flat almost 11 years ago in the year 2000 with a 73-year lease.

Original lease was 99 years.

I think I was ripped off a bit when I bought it.

Had no idea that the cost to renew the lease was going up so much.

Thank you.

Linzic99

:eek:£15,000?? We have just extended our lease having bought the freehold as a Management Company (8 flats in 2 seperate blocks) and we are paying approx £600 per flat to extend our leases - this is purely for solicitors/land registry fees.

A good website is - The Leasehold Advisory Service - I'm a new user so not allowed to post the exact link sorry!

timmyt

Linzic99 wrote: »

:eek:£15,000?? We have just extended our lease having bought the freehold as a Management Company (8 flats in 2 seperate blocks) and we are paying approx £600 per flat to extend our leases - this is purely for solicitors/land registry fees.

A good website is - The Leasehold Advisory Service - I'm a new user so not allowed to post the exact link sorry!

that doesn't help OP

OP - difficult to say, but just Google lease extensions - I like on the second page Nick Plotneks page, very good q&a.

devotee

http://www.fridaysmove.com/lease-extension-calculator/calculator-page-1 lease extension calculator.