50 yrs lease remaining?

rabialiones

she thinks she might have took out indemnity insurance when purchasing the property,
although she is not quite sure as she cannot find any documentation.
unless it with the deeds with the bank, or with the solicitor
would that give her legal help, if she has it

davidmcn

rabialiones wrote: »

she thinks she might have took out indemnity insurance when purchasing the property, would that give her legal help?

Indemnity insurance for what? I suspect she's barking up the wrong tree.

rabialiones

she can recall solicitor mentioning it to her

3mph

What is the LR doc since my very very limited experience it only shows the original term, 99 or 125 or whatever. Then if extended there will be a Deed of Variation.

The problem I have now is the lease on the flat I am buying shows 125yrs and the seller says that this is correct but the Management company who own the freehold say it was extended to 250 yrs when freehold bought 9 yrs ago. Only paperwork we have seen is the lease. Management company will only respond to seller not us. Seller says exchange now or they put it back on the market,. I have told them we will not buy until this is cleared up and in writing and have instructed my solicitor as such. Stalemate but I will walk away rather than take the risk.

Drawingaline

It all seems a bit odd tbh. When we bought a at back in 2001 the solicitor queried the lease length and advised we might have trouble getting a mortgage, and we're advised we would definitely need to extend the lease when we came to sell. We went ahead.

Sold in 2007, the flat had doubled in price and we knew we would need to extend to sell as no mortgage company would have lent money on a lease of less than 60years, as ours then was.

So buying this property (if it indeed has 50yrs remaining) with a mortgage seems highly unlikely.

robatwork

5 years ago sold houses are still on rightmove.

Would be interesting for you to look at it and see if the particulars mention anything about leasehold.

Something sounds wrong here though - a 50 year lease on a victorian house. Shame your friend sounds a bit disorganised and doesn't recall everything. Did she keep all the paperwork from the sale and are you prepared to look through it for her?

Hoploz

I'm wondering whether this is one of those cases where there is an old lease on the house which nobody knows anything about.

If this were the case, your friend would have bought the freehold house, but there is evidence of an old lease having been issued at some point, but which is not currently 'in use' ie, there is no trace of any leaseholder.

This would make sense when you say there was an indemnity purchased - this would cover the eventuality of someone showing up saying they were the leaseholder and they therefore had the right to live in the property for the term of the lease.

glosoli

I know a number of lenders where the minimum lease term is 25 years plus the mortgage term, or a minimum of 50, whichever is longer, therefore it may mot necessarily have been flagged up by them.

rabialiones

thanks hoploz , i hope that is the case.
i have been looking at her the old docs about the property which were sent to her by her solicitor a few months after purchase.

although there is written in some of the documents 'freehold house'.
there are some LR documents about previous sales/mortgages about the property which show that there was a lease of 99 years taken out

so at the time of purchase there would have been 55 years remaining.
the TR1 doc. which purchaser has to sign doesn't mention anything about length of lease.
the LR docs. do , but she received these within the pack of docs after purchase.
brochure stated 'tenure to be confirmed', which she did discuss with solicitor. then left it in his capable hands to look up. at this time through the discussion it was concluded that it might be freehold.

after this, i beleive the solicitor should have brought length of lease to her attention and advised her accordingly.
she would have negotiated the price if she had been advised, as the price was not below market value

that presumably is one of the reasons why a solicitor is used in house buying.
please correct me if i am wrong.
i do feel for her , she is having trouble sleeping

rabialiones

i have just looked at her mortgage lender on council of mortgage lenders.
their minimum term is 70 years from date of mortgage

most of the lenders have around this number

do they look at lease on house?