Is this right?

typeractive

Hi all,

Further developments in my 'buying a flat scenario'.

1. Decided on the old Flat - my aunt's. (see the thread and poll results by clicking link in my sig if ya want).
2. Made an offer - which we're working on, and subject to conditions.

Here's the interesting thing, and the main condition: The flat has 68years on the lease remaining. I would like this to be more, and my aunt was supposed to be looking into it...regardless of me buying it or them keeping it and renting it out. This is cool Having just spoken to my aunt, it appears that when they asked the landlord to extend the lease, they were quite simply given the answer of: NO. Bearing in mind my aunt has lived there over 25years. If I would like to apply for an extension I would have to own the property for 2 years, if they wouldn't let my aunt after 25 I hardly think they will say yes to me after only 2!!

Then my aunt tells me, that if you have lived there 2 years, that you have the right to buy the freehold (assuming the person underneath wants to buy it aswell), which is calculated by multiplying the ground rent (£30) by a number of years - say for example 10. By my calculations this would be £300. Forgive my manners - but are they having a laugh? Surely this can not be right?

If it is correct then I will buy the property. YEY! (assuming I could convince the person underneath). Though it makes me think, why not ask them to buy the freehold, then sell to me - so I don't have to wait 2 years and I will have peace of mind.

I appreciate your thoughts on this. I am going to contact their solicitor tommorrow, and apparently their firm can also represent me legally. IS this a good idea? I think it would make sense, as they will already have all the paper work etc. By law surely they can't 'diddle' me.

Thanks one and all!

cattie

When you've owned a leasehold property for 2yrs you have the legal right to an extension or to buy the freehold. I'm not sure if I've answered any of your previous posts & given you the advice of contacting https://www.lease-advice.org who are the best people to give advice on all aspects of owning leasehold property.

If you wanted to buy the freehold you're going to have to pay a heck of a lot more than £300 I would think. Some freeholds & lease extensions cost thousands.

You can glean all the info you need regarding buying freeholds, extensions & marriage value etc., which is something you have to pay to a freeholder when there is 80yrs or under remaining on the lease, from the above site.

A lease with more than 80yrs remaining doesn't have this marriage value so is less costly to extend or buy the freehold.

You can apply for an extension if you've owned a property under 2yrs but the landlord doesn't have to agree untill the 2yr period is up.

Your aunt can take her case to tribunal if the freeholder will not agree & to set a price for an extension of her lease.

typeractive

Thanks Cattie, you have replied to my other posts, and I know of teh lease advice place I have spoke to them briefly before, but the guy I got wasn't very helpful!

I thought buying the freehold would be a heck of a lot more than '£300' too! The fact that the landlord said no to my aunt before...after 25 years of living there, makes me think there is more chance of me winning the lottery 3 weeks in a row, than him/her letting me buy the freehold!

Your aunt can take her case to tribunal if the freeholder will not agree & to set a price for an extension of her lease.

Yeah, and this would be a good idea, though my aunt is very old (all dealings are with her daughter) and to be afair I'd never want to drag my aunt through all the hassle. Basically they just want to sell the flat for as much as they can and be rid. I would really love to buy it, though I fear it is just looking like a bad apple for the future. Pain the !!! to extend lease and little chance to buy freehold - it's not going to be desireable to anyone in 10years time - and then what?

I'll try calling the people from that site again tomorrow. In the meantime if anyone else has any stories or could highlight their costs involved in such activities, that would be super.

kingkano

Have you checked your mortgage company will take this flat? Usually under 70yrs lease they are pretty hesitant to take on....

Melissa177

Buy the new flat, less hassle

prutter

kingkano wrote: »

Have you checked your mortgage company will take this flat? Usually under 70yrs lease they are pretty hesitant to take on....

Exactly what I was gonna say. Usually your lender will require 40 years remaining on the lease after the term of your mortgage.
So for a 25yr mortgage, they'll require 65yrs remaining.....

typeractive

Melissa177 wrote: »

Buy the new flat, less hassle

oi! ya can't say that you voted for the old one! lol

yeah - i know about the mortgage concerns. the mortgage lenders I have spoke to so far haven't been worried about it and it's over 35 years!

I need to investigate all this lease extension and freehold stuff. I hoe the lease-adivce place are more helpful this time otherwise I am going to have to bite the bullet and pay solicitors, which I have no idea of judging whom is good, and what is reasonable to pay.

....I feel like just giving up.

Melissa177

typeractive wrote: »

oi! ya can't say that you voted for the old one! lol

I am female and therefore reserve the right to change my mind.

typeractive

Melissa177 wrote: »

I am female and therefore reserve the right to change my mind.

:mad: lol