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Flat with 85 year lease
alstf
Posts: 7 Forumite
I am buying a flat with an 85 year lease in a communal block with 10 flats. I understand that it becomes more expensive to extend the lease after 80 years. If I want to extend the lease before 80 years - would I need to do this jointly with the other leaseholders, or could I negotiate separately with the freeholder?
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You can do this separately from the other flat owners but i think you have to have owned the property for at least 2 years.Don't listen to me, I'm no expert!0
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I am buying a flat with an 85 year lease
No, you are buying a piece of paper that will allow you to live in the flat for 85 years.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Get the seller to ask the freeholder the terms on which a lease extension would be given.
that will give you some idea of the cost. The freeholder may be prepared to extend your lease by agreement before the 2 year period has passed, but he doesn't have to.
Getting information at this stage should give you and your solicitors some idea of how reasonable (or not) the freeholder is and this could have a bearing on your decision as to whether or not to buy the flat.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
A guide to your rights and the prices and valuation is here
http://www.lease-advice.org/publications/documents/document.asp?item=8
Your rights extend to 90 years plus 85 in your case, and a peppercorn rent.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
Thanks - it is reassuring that I do not have to renew jointly with 9 other households .... I will probably wait 2 years anyway.
Does the value of the flat have any bearing on the cost of renewal??0 -
Does the value of the flat have any bearing on the cost of renewal??
yes its pretty much the central part.
Simply put the lease should be surrendered in 85 years. As it gets shorter it becomes worth more to the landlord as he is getting it back that much sooner.
To defer that date you have to pay sum to convince him to do so.
At 80 years values start to fall off a cliff so be careful about waiting 2 years.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
propertyman wrote: »yes its pretty much the central part.
Simply put the lease should be surrendered in 85 years. As it gets shorter it becomes worth more to the landlord as he is getting it back that much sooner.
To defer that date you have to pay sum to convince him to do so.
At 80 years values start to fall off a cliff so be careful about waiting 2 years.
Yes - I can see it makes sense not to wait 2 years - thanks for this advice.
I know it is not possible to get an accurate estimate of the cost without getting in touch with the freeholder and starting the process - but would £3000 to £5000 be a rough estimate on a property worth £300K? (minus legal fees)0 -
I know it is not possible to get an accurate estimate of the cost without getting in touch with the freeholder and starting the process - but would £3000 to £5000 be a rough estimate on a property worth £300K? (minus legal fees)
You can check this by using the lease extension calculator available at: http://www.lease-advice.org/newintro.htmRICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Thanks Richard Webster, I checked and it is about what I thought.0
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