Share of Freehold and SDLT

m0bov

Hi all, in the process of buying a property with Share of Freehold. I am told it comes with a 999 year lease, property was built in about 1969.

Firstly, this is my only property so I am assuming 9k SDTL? Also, I am puzzled its 999 year lease not 940 odd something.

I am told its equal share of freehold, I will be named on the deeds and be a Director of the property management company. There is no ground rent, only maintenance charge.

Does this all sound correct?

Thanks.

mrschaucer

You are buying a lease to occupy a certain property for the remainder of the 999 years. It is indeed a 999 year lease but some of its length has now been used up, and it will finish in the year (1969+999) 2968. Luckily you are also buying a share in the company holding the freehold of that property, so when the lease expires or gets close to its end, you can presumably agree with all the other shareholders to grant yourselves an extended lease.
Your SDLT depends on how much you are paying.

m0bov

Arr, I see. I live in a leasehold flat at the moment. So its not "how long is the lease", but "how long is LEFT on the lease" I should be asking. Which is a long way from the 70 year where I would be panicking.

Cheers for that.

mrschaucer

I don't think you need panic about a 999 year lease granted in 1969! We'll all be pushing up genetically modified daisies long before then.

eddddy

I suspect the flat was sold with a 99 or 125 year lease in 1969.

Then, when the leaseholders bought the freehold (probably much more recently), they extended the leases.

They could have extended it to 999 years from 1969, or 999 years from the date they did the extension - or any other basis they chose.

In any case, 940 years vs 999 years makes no difference to value, saleability etc.