Vendor renewing Leasehold for a further 50 years?

findingnemo^^

Hi all,

Had an offer on a house for £107,000 accepted, valuation has come back fine.

Solicitors have said there is only 66 years left on the lease, Halifax won't lend to us if the lease is that short.

As a resolution the vendor has had a quote of £595 to renew the lease for a further 50 years.

Does that sound right?

We will agree to pay half of the costs towards the renewal, purely as we have already spent a few hundred on valuation etc.

Any help would be appreciated greatly! :embarasse

The_Blue_Hatter

findingnemo^^ wrote: »

Hi all,

Had an offer on a house for £107,000 accepted, valuation has come back fine.

Solicitors have said there is only 66 years left on the lease, Halifax won't lend to us if the lease is that short.

As a resolution the vendor has had a quote of £595 to renew the lease for a further 50 years.

Does that sound right?

We will agree to pay half of the costs towards the renewal, purely as we have already spent a few hundred on valuation etc.

Any help would be appreciated greatly! :embarasse

£595 to add 50 years to a lease with only 66 years remaining sounds very very cheap.

Ulfar

I would ask them to complete the extension of the lease themselves. If they don't they will never sell to someone who needs a mortgage.

satchmeister

findingnemo^^ wrote: »

Hi all,

Had an offer on a house for £107,000 accepted, valuation has come back fine.

Solicitors have said there is only 66 years left on the lease, Halifax won't lend to us if the lease is that short.

As a resolution the vendor has had a quote of £595 to renew the lease for a further 50 years.

Does that sound right?

We will agree to pay half of the costs towards the renewal, purely as we have already spent a few hundred on valuation etc.

Any help would be appreciated greatly! :embarasse

Get the seller to do it as you need to have lived in the property for two years before you can extend IIRC. £595 sounds too cheap as at less than 80 years remaining there is marriage value to take into account.

The £595 may be the fees to do the legal work rather than the cost of the lease extension. In any case get the sellrr to do it and pay the extra £595.

G_M

I too doubt the £595 is the cost of the lease extension. It sounds like the legal/admin costs associated with arranging it.

Offer to pay half (it's a pittance) and Exchange contracts fast on that basis, before the real cost becomes an issue!

bramble1

£595 sounds far too cheap to extend the lease.

You need to have lived in the property for 2 years to extend the lease - start negotiating with the seller to get that sorted as a condition of the sale.