Leasehold Extension (Freehold)

713price

A group of us (4) recently bought the freehold of the property we've got flats in. Two of the flats had already got lease extensions to their flats for 189 years - we've agreed to issue extensions for the remaining 2 flats. Will we need to issue Deeds of Variation to the leases and will these need submitting to the Land Registry - has anyone got any advice on the best way to proceed (preferably without having to use a Solicitor). Thanks.

Socajam

If the 4 of your already the freehold, why do you need to have issue lease extensions
Find a way to make the whole building lease free

Slithery

Socajam wrote: »

If the 4 of your already the freehold, why do you need to have issue lease extensions
Find a way to make the whole building lease free

Not necessarily a good idea. If the flats are in England then that would render them all un-mortgageable.

Socajam

Slithery wrote: »

Not necessarily a good idea. If the flats are in England then that would render them all un-mortgageable.

If that is the case, then let everyone have a lease for 999 years as it was in the good old days - problem solved.
That way when it comes to sell, no one will have a problem.

eddddy

Socajam wrote: »

If that is the case, then let everyone have a lease for 999 years - problem solved.
That way when it comes to sell, no one will have a problem.

It's not quite "problem solved". The OP's question is about how to register a Deed of Variation to extend the lease.

(The answer will be the same whether the leases are extended to 189 years or 999 years.)


Edit to add...

If the flats are mortgaged, I think you'll need to get the mortgage lenders involved. And they will probably insist that everything is done by a solicitor.

G_M

Socajam wrote: »

If the 4 of your already the freehold, why do you need to have issue lease extensions
Find a way to make the whole building lease free

One of the worst bits of advice I've read on this forum for a long time! :eek:

G_M

You need a solicitor..


How long remains on the 2 longer leases?
How long remains on the 2 shorter leases?

The 2 joint freeholders with the longer leases could demand a payment for extending the leases to the other 2. The bigger the gap in lease-length between the longer and shorter leases, the more they could demand (since a longer lease will make your flat more valuable.).

However you imply that all 4 freeholders have agreed to extend and nomoney has been mentioned - so keep quiet!


I would, however, suggest that you 2 who are getting the extensions pay the full legal costs, rather than the 4 freeholders splitting the cost.

Socajam

G_M wrote: »

You need a solicitor..


How long remains on the 2 longer leases?
How long remains on the 2 shorter leases?

The 2 joint freeholders with the longer leases could demand a payment for extending the leases to the other 2. The bigger the gap in lease-length between the longer and shorter leases, the more they could demand (since a longer lease will make your flat more valuable.).

However you imply that all 4 freeholders have agreed to extend and nomoney has been mentioned - so keep quiet!

I would, however, suggest that you 2 who are getting the extensions pay the full legal costs, rather than the 4 freeholders splitting the cost.

Now, this is where the problems are going to start.
It's equal pay for all or not at all.
Why should 2 homeowners pay when all 4 would be benefitting?

G_M

Socajam wrote: »

Now, this is where the problems are going to start.
It's equal pay for all or not at all.
Why should 2 homeowners pay when all 4 would be benefitting?

because 2 of them don't need lease extensions!

Two of the flats had already got lease extensions to their flats for 189 years

eddddy

Socajam wrote: »

Now, this is where the problems are going to start.
It's equal pay for all or not at all.
Why should 2 homeowners pay when all 4 would be benefitting?

Because, ideally, it should be done fairly.

It would not be fair if all the leaseholders paid the same amount, because their leases are different lengths.

And the price paid for the freehold should reflect the current lease lengths.



(FWIW, your posts on this thread sound a little bit like you're trolling. That's not very helpful for people who will use these forums for research.)

Tom99

713price wrote: »

A group of us (4) recently bought the freehold of the property we've got flats in. Two of the flats had already got lease extensions to their flats for 189 years - we've agreed to issue extensions for the remaining 2 flats. Will we need to issue Deeds of Variation to the leases and will these need submitting to the Land Registry - has anyone got any advice on the best way to proceed (preferably without having to use a Solicitor). Thanks.

Not sure which camp you fall into, short or long lease?
If either of the two short leaseholders have mortgages they are going to need a solicitor anyway.
The two short leaseholders should be paying a premium to the freeholder for extending the lease and paying both their and the freeholders legal costs ie the same as the two long leaseholders have done in the past.
You also probably need to look at the tax situation from the freeholders perspective, presumably this will count as a part disposal for CGT purposes.