Vendors changing mind over lease extension

divadee

We had an offer for a leasehold flat accepted last weekend. The lease remaining was 90 years but were informed that for a small fee the vendors would extend the lease back up to 99 years if we wanted. With this we offered a good price to include the lease extension. This was accepted.

The vendors wanted a quick sale and we want a quick purchase as we have been given notice to leave the rented flat we are in.

So sticking to our side we instructed our solicitor first thing Monday. Applied for the full mortgage application and had the mortgage valuation done yesterday and the full application was accepted and confirmed today. I don't think we could of done this much quicker.

We got an email from our solicitor today saying that the vendors do not now intend to extend the lease. Gahhh. This is frustrating as they own the freehold for the entire block (not shared) so it will be a negligible cost to them and we offered 4K above asking to get this lease extension included. Now already after only 5 days are they backing out of it.

We have told the solicitor we still want the lease extension but the vendors I think will say no. Our solicitor did say that we could lower what we are willing to offer but with the full mortgage offer come in we would then have to reapply for the lower amount!!!

This was going to be our home for 7-10 days which is why we wanted the lease extension as that way when we sold it would still have 90 years left on it and no issues for us. Now we would have to wait until we are in for 2 years and then decide.

Bossypants

Is it a particularly exceptional flat? I would be very turned off by such an about-face and tempted to walk away. Did they give any reason for changing their minds?

Having said that, bear in mind that even the most clear-cut lease extension can become a nightmare and drag on for ages, so if you're really invested in a quick transaction it might be better to just let it go and extend once you are in.

divadee

Bossypants wrote: »

Is it a particularly exceptional flat? I would be very turned off by such an about-face and tempted to walk away. Did they give any reason for changing their minds?

Having said that, bear in mind that even the most clear-cut lease extension can become a nightmare and drag on for ages, so if you're really invested in a quick transaction it might be better to just let it go and extend once you are in.

All we know is what their solicitor told ours that they 'don't intend to extend the lease'. My partner is nervous now and angry that they have been a bit underhand in changing their minds.

Our solicitor said it wouldn't take long for the lease extension at all as they own the freehold outright. So it won't even cost them that much in additional legal fees. She estimates a few hundred.

Our solicitor did say we got offer less than we have as we no longer have the lease extension but I'm concerned that we will have to reapply for our mortgage etc.... And it has only been agreed fully today.

Niv

I thought that normally if you are reducing the amount you now wish to borrow on an agreed mortgage due to last minute changes like this then you would not have to fully re-apply? Maybe I am wrong - may be worth checking with your mortgage provider.

I would be tempted to drop ~8k. That covers your 4k overpayment and 4k for your inconvenience / costs for extending at another time.

divadee

Niv wrote: »

I thought that normally if you are reducing the amount you now wish to borrow on an agreed mortgage due to last minute changes like this then you would not have to fully re-apply? Maybe I am wrong - may be worth checking with your mortgage provider.

I would be tempted to drop ~8k. That covers your 4k overpayment and 4k for your inconvenience / costs for extending at another time.

Thanks for that. I'm not sure about the mortgage thing. I am waiting for our broker to call us back.

They wouldn't accept 8k drop and to be honest it is worth more than that. It's just frustrating. I thought it was all going incredibly smoothly!

Niv

divadee wrote: »

Thanks for that. I'm not sure about the mortgage thing. I am waiting for our broker to call us back.

They wouldn't accept 8k drop and to be honest it is worth more than that. It's just frustrating. I thought it was all going incredibly smoothly!

Then if they will not accept an 8k drop you need to ask yourself how much you want the place and make a decision based on that.

If your overpayment of 4k was stated to be due to the lease extension I would take that off minimum.

divadee

Niv wrote: »

Then if they will not accept an 8k drop you need to ask yourself how much you want the place and make a decision based on that.

If your overpayment of 4k was stated to be due to the lease extension I would take that off minimum.

The 4K will be gone. I won't offer that anymore.

I just think we have done everything they wanted in a very quick turnaround. To go from offer accepted on Sunday to a survey and full mortgage offer and solicitors looking at contract packs by the Friday is pretty on the ball!!! We can't of actually moved any quicker!!