Extending lease on a share of freehold flat.

Edtough

Hi all,

Having successfully done one already, I am looking to buy another investment property to restore and quickly sell on at profit. I have put an offer in on a particular maisonette, but have a few reservations that I hope you can help me out with?

The maisonette is share of freehold, but has only 45 years remaining on the lease. The freehold is shared amongst another 14 maisonettes. I am led to believe by the estate agent that because the property has share of freehold, that the cost of extending the lease is only solicitors fees etc, and not the thousands you would expect on a normal lease extension with only 45 years remaining.

As I intend to turn this place round in a short time frame (3-6 months), I am concerned that the procedure for extending this lease could take a while, and be subject to all the other members of the freehold (the other 14 maisonettes) dragging their heels (or worse not give permission at all) for me to extend the lease before the statutory 2 year period.

Am I right to be concerned?

Can I negotiate a deal with the vendor that between solicitors, something in writing is made guaranteeing the extension of the lease, the cost, and the time frame?

And experience/advice greatly appreciated.

Thanks

Ed

Edtough

Anyone?

To summarise, how long typically should it take to extend the lease on a "share of freehold" flat that has just been purchased?

Edtough

Just done a search of the forum and found this question asked many times with good answers, so thanks indirectly guys (particularly Richard Webster and Firefox).

I think I will put conditions in my offer that the vendor extends the lease before exchange of contracts so I avoid all hassle. I am happy to add the vendors costs on top of my offer if they so wish (providing they can give me a rough figure before I agree to it).

Edtough

Ever feel like you are talking to yourself?

hazyjo

Did anyone hear something?!

Seriously, thought you'd answered your question. Was there something else you wanted to know?

Do you need a mortgage on the property? You wouldn't get one on a 45 year lease (to the best of my knowledge). Know it's as an investment, but that doesn't mean cash so best to ask.

If you're paying their costs, make sure they don't pull out after exchange or a contract like that could get messy! I'd not even offer, tbh. It's pretty standard that the vendor would have to extend the lease, or that it's done alongside the sale and taken from the proceeds (I think). I definitely wouln't be offering an incentive. They won't shift it to anyone unless they're cash buyers.

Jx

Edtough

Haha, yeah I was kind of messing about, but thanks Hazyjo, I appreciate the advice and will now not offer an incentive.

And I am indeed a cash buyer.

Richard_Webster

Yes, get seller to arrange lease extension - it's share of freehold so you say to him: "Its easy isn't it so you can do it, can't you?"

Remember if you want to refurb and sell on that you need to keep flat for 6 months because buyers will now rarely be able to get mortgages on properties owned by their sellers for less than that period.

westv

Richard_Webster wrote: »

Remember if you want to refurb and sell on that you need to keep flat for 6 months because buyers will now rarely be able to get mortgages on properties owned by their sellers for less than that period.

Is there a proper reason for that or is it just another "Let's think of ways we can make it awkward for people to get a mortgage" type of hoop for sellers to jump through?