Extend Your Lease guide discussion

propertyman

richardw wrote: »

What exactly do you mean? An example would be helpful.

That the property is marketed with no understanding of what terms of their lease are, nor does the agent.

The assumption is that the flat can just be sold and a short lease is just a problem to be sorted out down the line.

As well as those that think they have a share freehold flat, which of course are as common as unicorn eggs...

Mean_Gary

Thanks Propertyman (lol sounds like the ending to a comic strip)

That makes even more sense to me, flat will sell for what its worth all things considered on their merits, using the calculator here as a guide price re costs of extension of lease.

Perhaps I am in danger of over-complicating things by getting drawn into the complexities of this as a seller? I really dont want to be involved in this at all but am willing to make a concession on asking price for a quick sale.

kezza2012

well i dont own the freehold so would assume the housing association does
some flats are owned out right, others like me own a percentage which i pay rent and a service charge each month

NormW

Richard_Webster wrote: »

You could well have a case - but you need to read the reports that they sent you.

They could have covered themselves with some vague comments like:

"The length of the term of tears remaining on lease may have an effect on its value in the future. You should consult a surveyor about this."

Quite possibly enough for them to protect their backs.

I have all the paperwork relating to the purchase and will read it all thoroughly, but so far all I can find is a paragraph stating:

"The property is leasehold for a term of 99 years from 1st February 1973 and subject an annual ground rent of £20.00. The ground rent is payable in advance on the 1st July each year. The Lessors are currently Chancery St James Plc."

So nothing along the lines of the lease effecting the property value etc, I'll have to read all the other documentation I have to confirm. The only other mentions of the lease are relating to the lease plan for boundaries etc and the fact you have to have the buildings insurance through them.

Thanks for the advice.

liam1989

funnily enough i have recently been looking into extending my lease (i have 79 years left).

having looked around its looks as though i will need to pay 4k + expenses.

do you know how much 'expenses' may cost me?

i also do not pay any ground rent and i came across a letter dating back to 2003 where the freeholder was desperate to get rid of the freehold. im just wondering whether there is anychance i can get it cheaper than 4k or am i being overly optimistic?

thanks

richardw

kezza2012 wrote: »

I own a flat on a part buy/part rent scheme owning 50%
my lease is now in the 70's so who is responsible for extending the lease and covering the cost?
in the next few years i would like to go about buying the other 50% so this is something i would like to sort out sooner rather then later

Seems you would initially extend the lease based on your 50% share, have a good read of your shared ownership agreement to see what it details with regard to lease extensions.

SKPatel

liam1989 wrote: »

funnily enough i have recently been looking into extending my lease (i have 79 years left).

having looked around its looks as though i will need to pay 4k + expenses.

do you know how much 'expenses' may cost me?

i also do not pay any ground rent and i came across a letter dating back to 2003 where the freeholder was desperate to get rid of the freehold. im just wondering whether there is anychance i can get it cheaper than 4k or am i being overly optimistic?

thanks

Expenses normally include your solicitor's fees, the landlord's solicitors fees and also the landlord's valuation fees if s/he had one carried out plus any small admin costs. These will depend on what solicitors are instructed and where they are based as some are more expensive than others.

If you are negotiating with the landlord for a lease extension it is worth also negotiating these expenses too and if you will be responsible for the landlord's expenses or whether each party will pay their own.

SKPatel

SKPatel wrote: »

Expenses normally include your solicitor's fees, the landlord's solicitors fees and also the landlord's valuation fees if s/he had one carried out plus any small admin costs. These will depend on what solicitors are instructed and where they are based as some are more expensive than others.

If you are negotiating with the landlord for a lease extension it is worth also negotiating these expenses too and if you will be responsible for the landlord's expenses or whether each party will pay their own.

Sorry Liam - forgot to mention, if you think £4k is a lot you should have a chat with a surveyor to check if you're getting a good deal.

It may also be worth your while going for the freehold as you may get more for your money and then you can extend your lease for a longer term.

SKPatel

"Once the Tenant's Notice has been served (and registered) it may be assigned with the lease. This means that a leaseholder can serve the notice and then sell the flat with the benefits of the application. The purchaser will be able to proceed with the application immediately, without having to meet the two years ownership qualification."

So it appears that you have to start the ball rolling, buyers may only be interested after the process has gone through some of the stages and the risk of a tribunal is diminished.[/QUOTE]
I agree with Richard.

However, there is no harm in asking your landlord if s/he will extend your lease and the costs. If you can agree the terms, you may be able to complete the lease extension at the same time as your sale and avoid having to serve a Notice altogether.

If you do need to serve a Notice then its important that both party's use experienced advisors as a mistake can result in the entire claim being invalid.

SKPatel

kezza2012 wrote: »

well i dont own the freehold so would assume the housing association does
some flats are owned out right, others like me own a percentage which i pay rent and a service charge each month

If you landlord is a charitable housing trust you may not be able to extend your lease by serving a notice but may be able to negotiate an extension informally instead. You will need to check the lease carefully to see if you qualify. Do you know if the housing trust bought the freehold from another landlord? One way of checking this is to see if the landlord named in your lease is the same as your current landlord.