Selling our flat and lease extension

Jem8472

Hello all.

I am after some help. We are selling our flat and the buyer wants to extend the lease as soon as he moves in. I have read about serving a section 42 on the company that owns the lease hold. I just spoke to them and they said its not something they normally do.

Is being able to set up a situation where the new buyer can extend the lease before 2 years all dependent on the management company or is there some legal right we have to do this?

Thanks.

tired_dad

I would have thought that is a matter for his solicitor and the freeholders. Nowt to do with you or your solicitor. Stand to be corrected

pinkpiglit

Hi OP, I think you might get a better response if you post this message in the House Buying, Selling and Renting board.

Jem8472

pinkpiglit wrote: »

Hi OP, I think you might get a better response if you post this message in the House Buying, Selling and Renting board.

Good point, I will have a look in there.

Nile

Hi, we move threads if we think they’ll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL].

I’ve moved your thread from the ‘In my home’ board to the ‘House Buying, Renting & Selling’ board, where it is better suited.

Regards

Nile

AlexMac

My reading of http://www.moneysavingexpert.com/mortgages/extend-your-lease is that unless your lease is within a year or so of the dangerous 80-year watershed (after which extension is more expensive) then there is no hurry. At worst, your buyer will have to wait 2 years. Whereas if you set the ball rolling it may save them time...

But as dozy dad says above, is this your problem? If the incoming buyer has agreed your price, surely its up to them. And ditto- it's up to them to research the issue of lease extension or take legal advice? If you try to be helpful it might backfire, and if they really want you to save them time by you taking action now, they need to tell you this; you shouldnt be trying to guess their intentions? And if they do want you to act, especially if that means you rack up legal costs, they need to agree that with you and your solicitor (and pay your costs?).

And finally, I don't think its "dependent on the management company". The law is the law!

Shmuseling

Jem8472 wrote: »

Hello all.

I am after some help. We are selling our flat and the buyer wants to extend the lease as soon as he moves in. I have read about serving a section 42 on the company that owns the lease hold. I just spoke to them and they said its not something they normally do.

Is being able to set up a situation where the new buyer can extend the lease before 2 years all dependent on the management company or is there some legal right we have to do this?

Thanks.

If you as the seller qualify for a statutory lease extension (i.e. owned the flat for a minimum 2 years), you have the right to serve a Section 42 Notice and the benefits of the rights can be assigned to the incoming purchaser on completion so they don't have to wait for 2 years.
(taken from an older MSE post but I'm not allowed to link to the relevant thread)


When I bought a flat some years ago, I asked the vendor to serve the Section 42 Notice and the lease extension rights were assigned to me (I paid the legal costs incurred by the vendor). There were no problems with this process.

Jem8472

As far as I understand it serving a section 42 would work out a more expensive option for the incoming buyer as it is just for the 90 year legal extension. The freehold company will currently negotiate on the extension of the lease on informal terms. So with us sending letter back and forth and agreeing for a shorter amount of years for less money.

If I do a section 42 I believe it has to be done by a solicitor and will work out more expensive.

The guy wants some written proof from the freeholder that they will let him do it within two years before proceeding with the sale.