Extending the lease on freehold property?

slw26

For my property, I own share of the freehold with the other flat who are in the process of selling. The new buyer wants to extend the lease alongside their purchase, and the existing neighbours are not prepared to deal with it.
I need to confirm whether I have any objections to enter the lease extension to assist the new buyer (who's lease is 70yrs and quite short)

The new buyers solicitor has suggested to act for both of us as co-freeholders, but I am unsure as to my position and the financial implications. Basically, why should I be somewhat forced to extend my lease also and have to potentially pay a significant amount for it, when I am not selling? Is there any benefit to me extending also? Surely the new buyer is just trying to save money by co-applying??
Also, they are wanting to complete the extension of the lease immediately on completion of the purchase, so this has come out of the blue.
Any advice welcomed to aid my confusion! Thanks:o

eddddy

Presumably, your lease has 70 years remaining as well.

slw26 wrote: »

The new buyers solicitor has suggested to act for both of us as co-freeholders, but I am unsure as to my position and the financial implications. Basically, why should I be somewhat forced to extend my lease also and have to potentially pay a significant amount for it, when I am not selling?

What significant amount do you mean? The solicitors fee?

You could try saying that you agree to both leases being extended, if the buyer pays all the solicitors fees. (Doing 2 identical lease extensions is not much more work than doing one.)

slw26 wrote: »

Is there any benefit to me extending also?

You'll need to extend the lease before you sell, so why not do it now?

slw26 wrote: »

Surely the new buyer is just trying to save money by co-applying??

What's wrong with saving legal fees by extending both leases at the same time?

slw26 wrote: »

Also, they are wanting to complete the extension of the lease immediately on completion of the purchase, so this has come out of the blue.

The buyer probably needs to extend the lease on completion in order to get a mortgage.


Essentially you would be 'shafting' your co-freeholder by refusing to extend the lease. You might be 'shafted' back when you come to sell - your co-freeholder might similarly refuse to extend the lease.

Agreeing to the lease extension now means you can't be 'shafted' later.