Extend Your Lease guide discussion

poppyseeds

I am extending a the lease on my flat which will be £6k, but the management agents costs are £2790 which I think are high as my own are only £1000. My solicitor refuses to negotiate on my behalf. Do I have any other options?

Tykva

poppyseeds, we negotiated ourselves. freeholder paid his solicitor to draft an agreement. we paid £100 to our solicitor to tell us whether it is fine, as it did sound fine to us. no surveyor was involved at all.

djke

Any advice. My wife and I have just assisted my mother in law in purchasing a retirement flat (over 55yrs only).I was concerned to see the original lease was only 99yr leaving only 74yrs left .Nether estate Agent or our solicitor seem to find this of any concern because it’s a retirement complex and to quote our solicitor ‘buyers of this sort of property don’t usually need a mortgage so it would not be a problem to sell in the future My question is when it comes to extending a lease are the conditions any different for retirement property’s? Would the resale value be unlikely to improve because it’s a retirement flat?Do estate agents bother to look at the lease before valuation ?

buglawton

Of course it will affect resale value as the lease just keeps getting older. No estate agent is going to find anything of concern in a property you are buying!

ognum

djke wrote: »

Any advice. My wife and I have just assisted my mother in law in purchasing a retirement flat (over 55yrs only).I was concerned to see the original lease was only 99yr leaving only 74yrs left .Nether estate Agent or our solicitor seem to find this of any concern because it’s a retirement complex and to quote our solicitor ‘buyers of this sort of property don’t usually need a mortgage so it would not be a problem to sell in the future My question is when it comes to extending a lease are the conditions any different for retirement property’s? Would the resale value be unlikely to improve because it’s a retirement flat?Do estate agents bother to look at the lease before valuation ?

You have a diminishing asset, I guess the people who live in these places don't expect to live forever but when you relative has established residence by living their for two years you would be advised to find out the cost of extension.

turtleneck

Hi, I have a leasehold property with 65 years left which is rented out. In 65 years time I would be 96 years old. I was looking at this property as a pension and plan to keep it let out indefinitely. I have been paying the mortgage as repayment and have about 50% equity in it.

All the advice regarding the lease appears to be 'extend as soon as possible' and take the statutory route to get the best deal. However, I am wondering, in my situation described above, whether there is any point in me extending the lease? The only thing that makes me think it might be worth doing is the fact whatever I pay for the extension will be made up by the increase in value.

principlecounts

I didn't realise there was a huge thread on lease extension, I posted my call for lease extension advice here:

https://forums.moneysavingexpert.com/discussion/5044281

This is so great, everyone's experience is really getting me clued up, on a subject the professionals don't want to talk about...grr.

principlecounts

turtleneck wrote: »

Hi, I have a leasehold property with 65 years left which is rented out. In 65 years time I would be 96 years old. I was looking at this property as a pension and plan to keep it let out indefinitely. I have been paying the mortgage as repayment and have about 50% equity in it.

All the advice regarding the lease appears to be 'extend as soon as possible' and take the statutory route to get the best deal. However, I am wondering, in my situation described above, whether there is any point in me extending the lease? The only thing that makes me think it might be worth doing is the fact whatever I pay for the extension will be made up by the increase in value.

You're about the same age as me. I would still look into the costs of extending the lease, because you never know what the future unfolds. Also the longer you leave it, if you plan on selling the property it will make it difficult for the buyer to buy you're property, e.g. mortgage applications. Also when you're lease term has gone down to zero, your property belongs to the freeholder - that's right. Gone! But check any other conditions, they should be set out in the leasehold terms and conditions documentation that comes with the property. Lastly if you do extend, no more ground rent for you to pay.

principlecounts

turtleneck wrote: »

Hi, I have a leasehold property with 65 years left which is rented out. In 65 years time I would be 96 years old. I was looking at this property as a pension and plan to keep it let out indefinitely. I have been paying the mortgage as repayment and have about 50% equity in it.

All the advice regarding the lease appears to be 'extend as soon as possible' and take the statutory route to get the best deal. However, I am wondering, in my situation described above, whether there is any point in me extending the lease? The only thing that makes me think it might be worth doing is the fact whatever I pay for the extension will be made up by the increase in value.

You're about the same age as me. I would still look into the costs of extending the lease, because you never know what the future unfolds. Also the longer you leave it, if you plan on selling the property it will make it difficult for the buyer to buy you're property, e.g. mortgage applications. Also when you're lease term has gone down to zero, your property belongs to the freeholder - that's right. Gone!* But check any other conditions, they should be set out in the leasehold terms and conditions documentation that comes with the property. Lastly if you do extend, no more ground rent!

*http://www.lease-advice.org/publications/documents/document.asp?item=17#3

turtleneck

I think you have worked out the best answer yourself. Easiest option would be to sell as-is, via an auction so it will all be done in a month.