Leasehold Nightmare

ognum

OP it is unlikely you will be able to extend the lease for more than another 90 years.

Please read up on lease extension costs at 59 years it is likely to be a hearty charge and if you do it under the legal route you cannot extend until you have owned the property for 2 years.

My guess and it's only a guess would be it will cost somewhere between £10k and £25k for another 9o years!

I would walk and forget about the grand you have put in already.

hazyjo

ledwards26 wrote: »

I have been in contact with my mortgage advisor and they have said they won't allow anything on leasehold unless it has 50 years left after the mortgage has been paid.


My only concern is why hasen't the current residences not bought the freehold prior ..

NatWest? As far as I know, they're one of the few who offer that. Most will not lend. Okay for you now and if you extend, but what if they say £25k to extend, plus an increase in ground rent (likely). If you don't extend, you will then have difficulty in selling on (unless a cash buyer, or someone willing to take that gamble again if their mortgage provider also allows them to buy).

Also guessing they didn't extent cos of money. Do you know how long they lived there? Probably bought at a time when the lease length wasn't an issue and haven't given it much thought since.

Jx

AndyGuil

50 years after the mortgage is paid is around 75 years. Most lenders have issues with a lease less than 70 years. Best thing that can be done to remedy this situation is to get the current owner to start the lease extension process and add another 90 years at peppercorn ground rent. You will have to pay for this and it will be 10-20-30k depending on how much the property is worth. The only chance of you not paying this is if the paperwork the vendor filled in states it has a longer lease than it does, but that is opening a big legal area. Otherwise, walk away.

ledwards26

thanks for all the advice guys its really helping me and my partner understand the situation we are in.

Latest up

I sent a letter to the vendor explaining the situation, and he is as angry as me with the EA :@

He has said on the phone that they did give him the opportunity 15 years ago to purchase the lease but they never thought it would be an issue.
So the current plan is, the vendor has engage with the freeholder and paid £200 for a pack which will then give the costs i believe to purchase / extend the leasehold.

Jenniefour

Better option is for them to buy the freehold, if that's possible.

cattie

Silly vendor, I bet they are kicking themselves now for not taking the opportunity when it was offered 15yrs ago.

Keep us up to date with how things pan out anyway.

TrickyDicky101

ognum wrote: »

OP it is unlikely you will be able to extend the lease for more than another 90 years.

Please read up on lease extension costs at 59 years it is likely to be a hearty charge and if you do it under the legal route you cannot extend until you have owned the property for 2 years.

My guess and it's only a guess would be it will cost somewhere between £10k and £25k for another 9o years!

I would walk and forget about the grand you have put in already.

I was under the impression that statutory extension rights only applied to leasehold flats not houses?

hazyjo

ledwards26 wrote: »

thanks for all the advice guys its really helping me and my partner understand the situation we are in.

Latest up

I sent a letter to the vendor explaining the situation, and he is as angry as me with the EA :@

He has said on the phone that they did give him the opportunity 15 years ago to purchase the lease but they never thought it would be an issue.
So the current plan is, the vendor has engage with the freeholder and paid £200 for a pack which will then give the costs i believe to purchase / extend the leasehold.

If some vendor was angry with ME for their ignorance, I'd be telling them where to shove their leasehold house.

Anyway, I think you have just as might right to be angry with them for not declaring it. Obvious now he knows full well it's a leasehold property so sounds like you were deliberately misled.

Jx

benjus

Well the vendor might well be angry with the Estate Agent... but the part I don't understand is that EA listings will always state the tenure - and what kind of vendor doesn't look at the particulars prepared by the EA to market their property? Or see how their RightMove listing looks?

new_user_name

TrickyDicky101 wrote: »

I was under the impression that statutory extension rights only applied to leasehold flats not houses?

The rules for houses are different, but there is still a right to enfranchisement under certain conditions.

The rules are here: www. lease-advice. org /publications/documents/document.asp?item=15