50% share of freehold and short lease

Dragonlady100

Hi, I am thinking about buying a maisonette with 50% share of freehold. The only thing that worries me is the short leasehold of 75 years. Theoretically, it shouldn't be a problem to extend lease but what will happen if the other freeholder won't agree to extend? I read that I could even end up paying a high fee to the other freeholder or I could be stuck not able to sell my flat later if the other freeholder doesn't agree to extension.

The agent told me I shouldn't worry but I do worry and I'm not sure if she is right/honest.
The other problem could be the bank not wanting to give a mortgage for only 75 years lease.

What are your suggestions? Should I ask the seller to extend the lease as for him/her it will be a formality and a cost around of £300 or should I just walk away? I think buying a maisonette with 999 years lease is better than 50% share of freehold + 75 years leasehold.

A general question: Can you extend nowadays the lease to 999 years or only to 99 years maximum? (Almost all maisonettes in this area have a 999 year lease what is very practical.)

Many thanks in advance for your opinions!!!

Strapped

Get the seller to extend before you exchange.

princeofpounds

After you live there for two years you would have the opportunity to force an extension. If the freeholder quotes a silly price you can go to a leasehold valuation tribunal to set a price. See lease-advice.org for more info.

Extending a lease is not my main concern in this situation. With the other leaseholder being th freeholder and having 50pc of all leasehold 'votes' it will be harder for you to 'usurp' them if their freehold management is not satisfactory.

cattie

With a lease of 75yrs remaining, getting a mortgage shouldn't be an issue at all. Of course a good solicitor will warn you of the importance of getting the lease extended asap.

But as others have mentioned, ask current owner of maisonette to extend the lease prior to exchange and completion.

Dragonlady100

Many thanks for all your reply:)
You confirmed my suspicion that the EA doesn't tell the truth - "the lease is not important as you were the freeholder". Well, but only to 50%.

Apart from this, I could theoretically end up paying a big premium to the other freeholder when s/he has 999 years lease and doesn't need to extend her/his lease.

There are other maisonettes in the area with the 999 years lease and I'm not sure if it were better to forget this one with the share of freehold and just go for the others with the 999 years lease (if the buyer doesn't want to extend the lease).

The problem is that I like this one with 50% share - a nice kitchen, a converted loft and a perfect quiet areas for my cats.;)

Ulfar

Have you checked whether the loft has been converted properly and with the permission of the freeholder at the time ?

It may be that your flat does not constitute part of flat for the lease.

Soundgirlrocks

It might be worth finding out if the other flat has the same length of lease as if they do and want to extend it should only cost you both the legal fees (assuming the other flat owns the other 50% of the freehold)

Dragonlady100

Ulfar wrote: »

Have you checked whether the loft has been converted properly and with the permission of the freeholder at the time ?

It may be that your flat does not constitute part of flat for the lease.

Not yet, but this would be on my list. Jeez, it's getting more and more complicated before it even started.