Extend Your Lease guide discussion

AmershamO

IanIan wrote: »

The world of lease extensions and purchase of freeholds of houses and blocks of flats is littered with lawyers and surveyors who think they know what they're doing, but don't. Such folk frequently end up being sued for negligence, which is one of the reasons why professional indemnity insurance is so very expensive. Homeowners therefore need to be very careful when employing professionals to act on their behalf. Before instructing such professionals, homeowners should ask the professionals questions such as "how long have you been involved with this type of work?", "how many similar transactions have you dealt with?", "how many times have you had to take a transaction to the leasehold valuation tribunal, and what were the results?", "what is your fee?", "how long will the whole procedure take?", "why is your fee so high?", "have any previous clients complained about your service in the past?"


I can see that these remarks may appear to be rather cynical, but I know several people who have gone through the lease extension process and ended up getting their fingers burnt thanks to poor quality professional advice.

Of course that's correct but that applies to anything. However there are plenty of Surveyors and lawyers out there who know exactly what they're doing and could save you thousands in the price you pay. Go by recommendation or choose someone from the websites of Association of Leasehold Enfranchisement Practitioners (ALEP), LEASE or the RICS.

AmershamO

liam1989 wrote: »

morning all,

i have two really quick questions. firstly, i have just managed to get hold of some money which im hoping is able to get my lease extended.

firstly, it says by law i have to have been living in the property for at least 2 years before i can do anything. is this rubbish? can i do something about it now? (btw i have been living in the property for 6 months)

and secondly, the figure i have been advised by various calculators and websites for cost of an extension is 4k. is this based on a house, because i live in a flat?

many thanks for reading and replies will be most helpful

It's 2 years ownership. Since the 2002 Act residency is irrelevant. The calculators are a very very rough guide. Don't rely on them too much. It's much more complicated than that.

AmershamO

richardw wrote: »

The buyers couldn't do a lease extension under the statutory process until they've lived there for 2 years or more and a lease extension informally with the freeholder may be more expensive with unfavourable terms. .

Assuming the existing owner qualifies for a statutory lease extension (i.e. owned the flat for a minimum 2 years). he can serve a Section 42 Notice and the benefits of his rights can be assigned to the incoming purchaser on completion so they don't have to wait for 2 years. Usually best to sort out an extended lease yourself before you market/sell the flat.

NormW

WizWard wrote: »

Not sure why you think you have a case against the conveyancer? You presumably engaged him/her to help you buy a lease with a term of 66 years unexpired and this is precisely what you bought. Which particular part of the term "a lease for 66 years" did you not understand?

I'll ignore the condescending tone and be forthcoming with further information.

I engaged them to help me purchase a property, not buy a lease. As part of the paperwork they sent me I understood the lease had 66 years remaining, but with no further comments on it, just the number of years stated as fact. 66 years at the time sounded plenty time to me given I was getting a mortgage of 25 years term and I had no reason to think otherwise until this MSE article was published. What I did not know nor was I informed of, is the fact that as the lease only had 66 years remaining in 6 years time the flat I'd bought would be (virtually) unmortgageable by potential buyers should I want to sell and move on. Nor was I informed that the soonest I could apply to extend would be at 64 years remaining and that the cost would be several thousand pounds!

When I engage a professional to help me with matters I'm unfamiliar with, I expect them to give me the best advice they have and point out important issues to consider. As the remaining term on the lease is important for when you come to sell the property and can be at great expense, I would expect them to have pointed this fact out to me. You can't tell me the conveyancer wasn't aware that a 66 year (64 before I can apply to extend) lease is going to be expensive to extend or at least warranted further investigation, but they failed to pass this information on. You cannot expect me, a first time buyer, to have known a 66 year lease was short and going to cost circa £8000-10000 to extend.

SAS0

Good evening,
Bought a Leasehold groundfloor flat (on a semi-detached house with grd floor+1st floor).
Lease says "IF two or more persons parties hereto comprise the Lessee they shall be jointly and severally liable on the covenants on the part of the Lessee herein contained and shall be beneficially entitled to the Demised Premisses as joint tenants and pending the sale of the Demised Premisses the trustees for the time being of this deed shall until the expiration of Eighty years from the date hereof have the same full and unrestricted power of mortgaging leasing or otherwise dealing with the Demised Premisses as an absolute owner."

But on the THE FIRST SCHEDULE says the "TERM: Nine hundred and ninety nine years from the date hereof" (1997)

What does it mean ? we call pull the house down, but need to have it built back before the 80th year ?
What happens after the 80th year ?
lease expires ? or just in 900+ years ?

---

Also says the common installations are "gutters, things conveying rainwater, chimney stacks, etc"

But that I'm responsible for "the building below level of the top of the brickwork supporting the joists which the 1st floor is on"
And the upper neighbour responsible for "above the level of the top of the brickwork supporting the joists upon which the 1st floor rests...including the roof and roof void of the building"

Does it mean the Lessor is responsible for the gutters? or my neighbour above ?

---

What about Insurance ?
Who is responsible for insuring the building ?
My mortgage company required me to insure the full building, but I'm on a leasehold !? very confusing...
Who is responsible (which party) for subsidence, for example if it happens ?


Thank you for helping me to understand all this jargon.

richardw

AmershamO wrote: »

Assuming the existing owner qualifies for a statutory lease extension (i.e. owned the flat for a minimum 2 years). he can serve a Section 42 Notice and the benefits of his rights can be assigned to the incoming purchaser on completion so they don't have to wait for 2 years. Usually best to sort out an extended lease yourself before you market/sell the flat.

Yes, but it appears they may be some time away from issuing a S42 Notice and in the mean time want to sell.

propertyman

AmershamO wrote: »

It's 2 years ownership. Since the 2002 Act residency is irrelevant. The calculators are a very very rough guide. Don't rely on them too much. It's much more complicated than that.

Erm no the resdiecny test was never passed into law

propertyman

NormW wrote: »

I'll ignore the condescending tone and be forthcoming with further information.........You cannot expect me, a first time buyer, to have known a 66 year lease was short and going to cost circa £8000-10000 to extend.

I may have bad news for you, your expectations may not match the services provided and I suggest you look at the terms of engagement, which may simply have been for conveyancing purposes.

I state this as fact that your plight is not uncommon and it is largely a failure brought about concentrating on the lifestyle and home, rather than understanding what is being bought. Too little care is also taken to understand the services offered when buying. The prevailing expectation is that "someone should have told me" rather than "perhaps I should have researched more".

The principal caveat emptor is ancient and just as valid today, emphasis being on the emptor not jurisconsultus.

Start with the ToE.

seven-day-weekend

My son has just bought a flat with a 66 year lease, which we are going to extend as soon as we can.

However, both we and his conveyancer made him aware of this before he bought the place (he would not have realised the implications otherwise, as a first-time buyer). I do think that NormW's conveyancer should have pointed it out what the implications are of having a lease of this length, if they were doing their job correctly.

However, whether he has any comeback against them I have no idea. It might just be better to learn from the experience and renew the lease as soon as he can.

I don't think short lease flats are necessarily a bad idea, as they normally come cheaper, but I do think that the buyer should be made well aware of the implications, so that they can make an informed decision.

Edited to add: My son used a 'real' solicitor, in fact the solicitor was the Senior Partner in the firm, he did not use a 'conveyancer'.

propertyman

But your or my opinions and expectations are irrelevant, and in most cases misleading. I expect doughnuts to taste like they used towhen Clarks made them, but the world has moved on.

You can only expect a provider to provide the services that they offer which obligates us to take time and understand. Especially when it is one of the biggest single financial transactions that most members will undertake, takes a chunk of annual outgoings, and is the roof over their head.

:mad:This makes me angry that people are unbelievably self righteous and so ready to play the victim card, when if they devoted a fraction of the time spent on " sourcing" appliances and fittings, they would not be in a mess.

I just googled" I want to buy a leasehold flat" and what is the first result- leasehold advisory service.

C'mon-- "I didn't know about this"...please:rotfl:

I am sorry but far too often people are victims, but victims of their own self obsession laziness and expectations. Nothing wrong with a little humility and asking and even paying for advice now and again.

Fire and brimstone on a Thursday morning.......:o