leasehold problem

irwellgirl

Hi I've finally got a buyer for my property... a cash buyer as well. Today my solicitor has left a message to say that the buyer has been advised by his solicitor to seek to extend the lease on the property as it has a 'short time' left... the lease still has 95 years to run so I didn't think it would cause a problem. The buyer already has a tenant lined up for the property so I expected a quick sale... has anyone any advise? How long would the procedure of extending the lease take? Am i unreasonable if I refuse to seek to extend with 95 years to run? Shall I offer a financial incentive to ditch the extension idea? :eek::eek:

sirmosh

Considering a number of leases are only 99 years in the first place it's bordering on unreasonable, but then if you want to sell you may have to give in to his demands. You can apply to extend the lease and then he can finish it when he's bought it, alternatively he can wait to years once he buys it and do it then and considering there's a good amount of time left it shouldn't cost him much if any more.

propertyman

There is no appreciable affect on value at 95 years, he can apply himself, wait the 2 years to apply for the statutory right, or you apply and he takes the benefit of it and costs on completion.

cattie

It makes you wonder if buyer's solicitor has ever dealt with a leasehold property before. I've never heard of 95yrs being described as short term!

Richard_Webster

Find another buyer, as this is unreasonable like asking for full Radon protective measures in an area where 1-3% of properties are expected to be over the minimum level!

There are always over cautious people out there and they just have to realise that is what they are and people generally ignore their foibles.

propertyman

I have dusted off my valuation tables and to extend it to 125 years at the same ground rent it would increase the value about £800.

The buyer gets the entire benefit of that, it does reduce the current value.

The figure for a statutory extension is made up almost entirely of the "buying out" of the obligation to pay rent for the new lease of 90 + 95, a benefit that accrues to the new owner not you.

There is no case for the price to be reduced.

My conclusion is "chancer" :cool:

richardw

The buyer's solicitor may be issuing the extension 'advice' as a matter of course, perhaps by a junior member of staff.

The buyer doesn't have to take the 'advice'. Perhaps start seeking other buyers because who knows what other gems this solicitor may have up their sleeves.

hazyjo

Sounds like an investor buying. If you drop at this stage, I'd bet my bottom dollar he'll be dropping the price after survey, and again just before exchange.

I think I'd be cutting my nose off to spite my face.

Whilst the majority of those buying for investment are okay, there are some who think they can try it on. I had an investor buy my old house who was great. Dropped me a couple of grand after the survey cos of damp, but he created no other probs. He'd wanted to exchange within 3 weeks but ended up hanging on for 5 long months due to complications with our purchase.

Good luck.

Jx

jee

Maybe you can serve notice to the freeholder to extend the lease as part of the sale. For a quick cash sale (where the price is good for me) I would- plus it costs nothing.
The solicitor is obviously inexperienced here so I would expect more problems from this buyer if I were you. Good luck.