Extending a lease query?

Adly812

I'm purchasing a flat with 86 years lease remaining. I've made it clear to the vendor that they need to extend the lease before I proceed as I know when 80 years marriage value on a lease nears costs increase to get this done. My question is how long does it take to renew a lease ? As I want them to do it before exchange and query the time proceedings for this?

System

Hiya,

I extended the lease on my flat a few years ago and the whole process took over a year, but a lot of that was negotiating with the Freeholder and then I had to go down the statutory route (90 year extension) and ended up taking it to a Tribunal as we could not agree. I am sure the whole process could be considerably quicker, but that will depend a lot on who is involved and how willing they are to negotiate.

If the person you are buying from has owned the property for over two years, they can serve the section 42 notice now and then assign the benefit to the new owner (you). That may be something to consider, if you are keen to get into the property ASAP.

Good luck!

eddddy

Smb3088 wrote: »

I'm purchasing a flat with 86 years lease remaining. I've made it clear to the vendor that they need to extend the lease before I proceed as I know when 80 years marriage value on a lease nears costs increase to get this done. My question is how long does it take to renew a lease ? As I want them to do it before exchange and query the time proceedings for this?

It's more usual to get the lease extended on completion (as opposed to before exchange).

If you want it extended on completion, it will have to be an 'informal lease extension' - which is typically worse value. And you need to check that you are not being 'shafted' with rising ground rent.

The time taken depends on how fast the leaseholder and freeholder (and their solicitors) get their act together. Might take 1 week or 3 months or it may never happen.


A Statutory Lease Extension is usually cheaper and safer. But it takes 6 to 18 months, so you would probably need to do that after you buy (having negotiated a suitable discount on the purchase price).

Soundgirlrocks

Smb3088 wrote: »

I'm purchasing a flat with 86 years lease remaining. I've made it clear to the vendor that they need to extend the lease before I proceed as I know when 80 years marriage value on a lease nears costs increase to get this done.

I wouldn't get too stressed you have 6 years to extend it before marriage value comes in to play, use it as a negotiating tool to get the price down (find out how much it would be to extend) but I would do it myself once I was in rather than add a complication to the sale.

Smb3088 wrote: »

My question is how long does it take to renew a lease ? As I want them to do it before exchange and query the time proceedings for this?

It can take little while to sort out a lease extension. Alternatively if you want to do it ASAP you can get the vendors to start the process of a statutory extension (you have to have owned the property for two years to go down the statutory route) however the vendors can start the process for you and then you are allowed to continue it.

Do you know how much the extension will cost & who the freeholder is?

always_sunny

Smb3088 wrote: »

I'm purchasing a flat with 86 years lease remaining. I've made it clear to the vendor that they need to extend the lease before I proceed as I know when 80 years marriage value on a lease nears costs increase to get this done. My question is how long does it take to renew a lease ? As I want them to do it before exchange and query the time proceedings for this?

They can start the statutory lease extension but highly likely it will not be done by the time you exchange/complete.

Adly812

Thanks everyone. Just the info I required. I'll speak with my solicitor and go on the recommendations, prob best to get them to start the process then I continue it after purchase. Ty all !!

hutman

try contacting the freeholder and ask how it works. I did this on a property and ea's were astounded.