FTB, lease extension options?

japmis

Sometimes there are clauses which stipulate you must be the owner for 2 years before you can renew a lease!! Please check beforehand JNCR.

From one FTB to another, good luck!

Leaseman_2

82 years is vague not precise!

If you complete the purchase and the lease has 82 years and 6 months that leaves you a six month window after expiry of the 2 year qualifying period in which to serve S42 Notice and avoid paying marriage value.

If you complete the purchase and the lease has 81 years and 364 days (the astute will notice that I have ducked the exactly 2 years question) then after expiry of the 2 year qualifying period you will have a lease under 82 years and marriage value will be payable.

It is vital that you use a solicitor experienced in lease extension work. I am not a solicitor but I know the value of a good one!

You could ask the vendor to serve S42 Notice (if they are a qualifying leaseholder) and assign the benefit of that notice.

If you buy subject to the vendor obtaining a lease extension then make sure that you specify the lease length and ground rent etc on which your offer is based otherwise you might find that the vendor strikes a deal with the freeholder for an extended lease (for a smaller premium) which is more onerous than you were expecting for the price you have offered. If you have taken my advice (and made the offer via your experienced solicitor!) you can then renegotiate to adjust the price you are paying!

P.S. Don't rely on a lease extension calculator, don't commit yourself without proper valuation advice from a real experienced valuer!

tim123456789

CapitalLeasehold wrote: »

82 years is vague not precise!

If you complete the purchase and the lease has 82 years and 6 months that leaves you a six month window after expiry of the 2 year qualifying period in which to serve S42 Notice and avoid paying marriage value.

As before.

For an 80 years lease you don't avoid paying marriage value. You pay it, but it is assumed to be zero.

The difference here isn't just semantics, it is critical.

If the marriage value at 80 years and one day is zero, the marriage value at 79 years an 364 days is tiny and hardly worth worring about IMHO

tim

Leaseman_2

For an 80 years lease you don't avoid paying marriage value. You pay it, but it is assumed to be zero.

The difference here isn't just semantics, it is critical.

For the sake of order the relevant wording in the legislation is: " Where at the relevant date the unexpired term of the tenant’s existing lease exceeds eighty years, the marriage value shall be taken to be nil."

As I said, you avoid paying! Don't see why its "critical". You can substititute "pay half of nil" if you like!

If the marriage value at 80 years and one day is zero, the marriage value at 79 years an 364 days is tiny and hardly worth worrying about IMHO

Its not an amount that I would worry about on say a £250,000 long lease value (not my place to judge what others might worry about) but I bet there are plenty of posts on MoneySavingExpert about lesser savings!

I stand by my advice!