Cheapest & quickest way to solve freehold lease extension issue

huntaaar

Hi all,

I am currently buying a leasehold flat that come with a with a share of the freehold. The lease is in the low 80’s so we have requested it to be extended before we exchange.

There are 4 flats and 3 freeholders. Last we heard from the vendor was they were happy to extend before the sale but now their solicitors are saying they don’t want to and talking about it being problematic in terms of the other freeholders costs and a potential need for a “market rate premium” to be paid if we just extend the one lease. I assume this may just be solicitor’s doing what they do and representing the strongest case for their client but I am in the process of trying to clarify.

The freehold arrangements have been pitched to us as very informal. For example, there is a ground rent charge of £100 per annum but no one collects (the logic being they would be paying themselves). There is no management company set up either.

My main question is, assuming the other parties are happy to have all the leases extended. What is the cheapest and most straightforward way to get it done? I figure understanding this can help with our negotiations and we are willing to contribute some of the costs, subject to seeing the sale complete and it being done in the cheapest, most effective way.

Any advice welcome

Thanks

budgetdiyer

I don't really see why with low 80 left on the lease you need to extend the lease. Its normally sub 70 years that mortgage companies get twitchy.

You don't have to renew all the leases, you can just renew a single lease.

huntaaar

Mainly because I am concerned that I may need it done before and the other freeholders would be able to leverage the situation (as many examples are cited on this site). I don't want to assume they would but I don't want to be left vulnerable either.

Any advice on the easiest and cheapest way to extend the single flats lease?

tim123456789

huntaaar wrote: »

Mainly because I am concerned that I may need it done before and the other freeholders would be able to leverage the situation (as many examples are cited on this site). I don't want to assume they would but I don't want to be left vulnerable either.

Any advice on the easiest and cheapest way to extend the single flats lease?

The wrong way.

Look, as a share of freehold there should be no premimum to pay for the extended lease and all you have is legal fees.

The difference between the cheapest and the most expensive is likely to be say, 2k of which yourt share is 500 pounds.

Do you and your fellow freeholders really want to risk getting it wrong for such a small sum?

Richard_Webster

If the other freeholders are not prepared to co-operate in extending this lease then they won't co-operare with you n the management of the building in the ftuure and you should leave well alone.

These "share of freehold" situations can be very good or very bad depending on the people who are involved.

If the others don't want to extend at the moment there is no reason why your seller should not have hislease extended now.

Also remember that as there is no company you need to get evereyone to sign every time aflat changes hands or a lease needs extending. if one of the other co-freeholders disappears or refuses for some reason you can have problems in the future, so it isn't all marvellous as estate agents often try to imply.

The freehold should be held on a trust which deals with these eventualities or held by a company.

huntaaar

Richard_Webster wrote: »

If the other freeholders are not prepared to co-operate in extending this lease then they won't co-operare with you n the management of the building in the ftuure and you should leave well alone.

These "share of freehold" situations can be very good or very bad depending on the people who are involved.

If the others don't want to extend at the moment there is no reason why your seller should not have hislease extended now.

Also remember that as there is no company you need to get evereyone to sign every time aflat changes hands or a lease needs extending. if one of the other co-freeholders disappears or refuses for some reason you can have problems in the future, so it isn't all marvellous as estate agents often try to imply.

The freehold should be held on a trust which deals with these eventualities or held by a company.

Thanks Richard, I figured this was the case. I just want to be carful as informal sounds great for some things but not when I want something and others might not.