Buying a flat with a 58 year lease

eddddy

needhouseadvice wrote: »

So on exchange they would get the money for the lease and it would all be sorted by completion - is that right?

No - not quite.

On exchange day, contracts would be exchanged between 3 people - You, the flat seller, and the freeholder.

So on exchange day:
- The seller promises to give you the flat on completion day
- The freeholder promises to extend the lease on completion day
- You promise to pay the seller and the freeholder on completion day

Then on completion day, you (and your mortgage lender) pay - and it's all sorted.

But - you don't really need to know this detail, because your solicitor will sort it all out. It's a fairly standard process.


BUT... as you can see - this relies on a cooperative freeholder, and it relies on negotiating a 'sensible' extension cost with the freeholder.

Some freeholders are uncooperative - and some freeholders see this as a great opportunity to demand 'silly money' for a lease extension.

needhouseadvice

eddddy wrote: »

BUT... as you can see - this relies on a cooperative freeholder, and it relies on negotiating a 'sensible' extension cost with the freeholder.

Some freeholders are uncooperative - and some freeholders see this as a great opportunity to demand 'silly money' for a lease extension.

Yeah, that's what I've heard...