Vendor offering weird lease renewal terms

Wasteman

Dear MoneySavingExperts

I am offering on a flat with a 78 year old lease. The agent states that the vendor is willing to get the ball rolling on the lease extension then I should take over the process when I purchase. The agent stated it would cost £15,000 to add 90 years however he also said the freeholder said it was possible for me to extend the lease back to 99 years total for only £5,000.

I was somewhat familiar with the 90 year extension, this is the statutory route under which the freeholder is obliged to grant the lease, however I think the extension to 99 years is another matter, subject to negotiation and hence may fall through.

I am worried that my offer price should really reflect that only the much more expensive 90 year extension is the one the freeholder is obliged to grant. If the vendor insists the cheaper shorter lease extension is available, is there any way they and I can guarantee this in advance of purchase to ensure I do not get stung?

Cheers,

tim123456789

Given that the reversion and marriage values are the same, for a 78 year old lease the difference in a new 99 year lease and a plus 90 years extension shouldn't be so big

This is probably because the 99 year lease is at an increased GR and the 90 year extension is peppercorn.

You need to know what the proposed GR is before you can decide if the 5K offer is good value