Buying Flat with Low Lease- Section 42

abbi_claire

Hi,

We have had an offer accepted on a property that has a lease length of 87 years. As part of the offer, it ha been agreed that the current vendor will begin the lease renewal process by issuing a Section 42 to the freeholder and then assign the benefit to ourselves to complete it.

We were under the impression that this was a common process however as we have reached our to instruct a solicitor who can act on our behalf for both the purchase process and extending the lease, we have received feedback from many a solicitor that this is not something they have ever dealt with and wouldnt want to take it on?

Can anyone advise whether this is common or not as it is making us doubt our offer if solicitors are not even willing to take it on!

Tom99

[FONT=Verdana, sans-serif]Its very common and I am surprised you are having this trouble, I have done it myself.

[/FONT] [FONT=Verdana, sans-serif]You do need to appoint a solicitor who will be able to check that the section 42 notice is valid, is to be served on the right person at the right address, you do not get a 2nd chance if anything is wrong. Also the assignment of the notice needs to be correct if you are to take over.

[/FONT] [FONT=Verdana, sans-serif]Have you or the vendor received RICS qualified advice as to the likely premium you will pay and the appropriate figure to put in the section 42?

[/FONT] [FONT=Verdana, sans-serif]The lease extension may go smoothly at the price you hope for or it may not, these are some of the ways a freeholder can frustrate the process. You will be responsible for the freeholders costs even if you pull out.

[/FONT] [FONT=Verdana, sans-serif]https://www.leaseholdknowledge.com/lease-extension[/FONT]

abbi_claire

Thanks for this- my research online seems to suggest it is a common process so I am surprised at the reaction of the solicitors we contacted!

In terms of the suggested likely premium, we are currently going off a quote that the vendor got from the freeholder but we will be looking to instruct a surveyor to act on our behalf to confirm the appropriate figure for the Section 42.

Thank you for your help!

Tom99

[FONT=Verdana, sans-serif]The quote from the freeholder may or may not be for a statutory lease extension, ie +90 year at a peppercorn rent and on the same term.

[/FONT] [FONT=Verdana, sans-serif]If the lease has a fixed ground rent you can get an idea of approx cost here:

[/FONT] [FONT=Verdana, sans-serif]https://www.lease-advice.org/calculator/[/FONT]

[FONT=Verdana, sans-serif]Being 87 year you will not have to pay marriage value which will help contain the cost.[/FONT]