HELP? Need advise with what to do next regarding lease!!

Demiii

I'm probably going to write about something everybody hates, but bare with me !

Myself and my partner our first time buyers. We put an offer on a flat we liked, accepted and now at the stage of just about to exchange contacts but just been told new info.

Our solicitor has told us the flat has 71 years remaining on the lease, rather than 72 which we were told. She's told us if we were to go down the route of asking the seller to hand a notice that we would like to extend the lease at our expense she will not be able to deal with out case so we would have to find another solicitor who could do both our buying and dealing with extending the lease.

Our other option is to extend the lease after 2 years, making it 68 years remaining, which could cost us a hell lot.

We both have no idea what to do now, as we don't want to me stuck in two years time forking out for a 15k lease extension, possibly more.

Should we pull out ? Please don't hate.
Or is it not as complicated as it sounds to change solicitor.

We have also had our formal mortgage offer accepted too.

Thanks

Guest101

But you'll be paying that now to extend it?

marksoton

Personally i wouldn't purchase anything with less than 99 years on the lease.

Demiii

No not really, because at the moment its 71 years, which most mortgage lenders will lend to 70 years remaining. So once it falls below 70, the freeholder/landlord can be a bit more awkward with the costs.
So it's a bit of a difference.

You may be right, as we are still learning things everyday. But from what I've been told from our solicitor extending lease with more than 70 years remaining is cheaper.

Demiii

We know this now...
But being first time buyers, we thought we had read the ins and outs, but obviously the lease situation skipped us.

marksoton

Demiii wrote: »

No not really, because at the moment its 71 years, which most mortgage lenders will lend to 70 years remaining. So once it falls below 70, the freeholder/landlord can be a bit more awkward with the costs.
So it's a bit of a difference.

You may be right, as we are still learning things everyday. But from what I've been told from our solicitor extending lease with more than 70 years remaining is cheaper.

There are lenders who will mortgage below 70 years.

Was the short lease reflected in the selling price?

Guest101

Demiii wrote: »

No not really, because at the moment its 71 years, which most mortgage lenders will lend to 70 years remaining. So once it falls below 70, the freeholder/landlord can be a bit more awkward with the costs.
So it's a bit of a difference.

You may be right, as we are still learning things everyday. But from what I've been told from our solicitor extending lease with more than 70 years remaining is cheaper.

The lease extension isn't just a number pulled out of thin air, if you cant agree a price than a tribunal can step in.


- How much cheaper? That's the point, yes there can be a premium to pay, but you need figures not maybes.

Demiii

Oh right, ok.
We're learning! Sorry if I sound like a complete dummy.

So if we were to follow through with this flat, without them serving a notice to the land lord for an extension... As that would require us to change solicitor. After 2 years of living there, we can negotiate the lease extension price?

Thanks

Guest101

Demiii wrote: »

Oh right, ok.
We're learning! Sorry if I sound like a complete dummy.

So if we were to follow through with this flat, without them serving a notice to the land lord for an extension... As that would require us to change solicitor. After 2 years of living there, we can negotiate the lease extension price?

Thanks

Indeed.


I don't see how a notice to extend would benefit you now unless you have substantial additional funding?

Demiii

Because it could possibly be cheaper, dealing with it now, rather than 2 years time. Our solicitor has said along the lines of, you will basically pay a load more when the lease drops to 68 years.

So we panicked, as we thinking huge sums.

Regarding if the lease extension comes to X amount, we have the funds to do so. As we have a rough figure of what it could cost.

I sound so stupid and clueless, sorry.

Jox

There was 73 years left on the lease when I bought my one bed flat in 2005 and I didn't have a clue about leases....10 years later I extended the lease to 125 years (cost £15k + £3k legal fees) and I've just noticed the ground rent which was £75 a year has now been increased to £150 a year and will double after 30 years - stupid of me not to pick up on this (I had just had a baby which is my reason for foggy-headedness!) So check the ground rent as well if you extend the lease!