remortgage and lease extension

Bio23

Hello All
I presently live in a share ownership flat. I owed 50% share. I am in the process of staircasing to 100%. I have approached my bank and I was informed that I can  remortgage. I also want to extend the lease on the flat as the current lease is less than 80years.  I just find out that I need about £6,500 to pay for premium for the lease extension. Is it possible for the bank to lend the money to buy more lease while remortgaging at the same time? Also how much do I need to be looking at to pay for the solicitor for fees for lease extension and staircasing.
Thanks

emma_829

Bio23 said:

Hello All
I presently live in a share ownership flat. I owed 50% share. I am in the process of staircasing to 100%. I have approached my bank and I was informed that I can  remortgage. I also want to extend the lease on the flat as the current lease is less than 80years.  I just find out that I need about £6,500 to pay for premium for the lease extension. Is it possible for the bank to lend the money to buy more lease while remortgaging at the same time? Also how much do I need to be looking at to pay for the solicitor for fees for lease extension and staircasing.
Thanks

Whether you can borrow more money to cover the lease extension premium would depend on whether you could a) afford it and b) after the lease extension the increase in value of the property would mean that the additional borrowing amount would still fall in the ltv of the product you want. The solicitor cost for stair casing and lease extension are probably going to vary dependant on which solicitor that you use, but bear in mind you will also need to cover the landlords solicitors costs as well. You’re probably looking at 3k roughly minimum for the fees. Lease extension and staircasing solicitor costs aren’t cheap as only an experienced solicitor can deal with them. 

MattMattMattUK

One option, if the borrowing on the mortgage to cover the lease extension is not possible, and certainly take advice from a broker on this first, would be to take out a personal loan with no early repayment charges, get the lease extension process done, that will increase the value of the property. Once all that is done you can then complete the remortgage and use the mortgage to pay off the loan, but it will depend on your affordability, LTV etc.

Bio23

emma_829 said:

Bio23 said:

Hello All
I presently live in a share ownership flat. I owed 50% share. I am in the process of staircasing to 100%. I have approached my bank and I was informed that I can  remortgage. I also want to extend the lease on the flat as the current lease is less than 80years.  I just find out that I need about £6,500 to pay for premium for the lease extension. Is it possible for the bank to lend the money to buy more lease while remortgaging at the same time? Also how much do I need to be looking at to pay for the solicitor for fees for lease extension and staircasing.
Thanks

Whether you can borrow more money to cover the lease extension premium would depend on whether you could a) afford it and b) after the lease extension the increase in value of the property would mean that the additional borrowing amount would still fall in the ltv of the product you want. The solicitor cost for stair casing and lease extension are probably going to vary dependant on which solicitor that you use, but bear in mind you will also need to cover the landlords solicitors costs as well. You’re probably looking at 3k roughly minimum for the fees. Lease extension and staircasing solicitor costs aren’t cheap as only an experienced solicitor can deal with them. 

Thank you so much for your reply. Yes. My solicitor is asking for more than 3k at the moment 

Bio23

MattMattMattUK said:

One option, if the borrowing on the mortgage to cover the lease extension is not possible, and certainly take advice from a broker on this first, would be to take out a personal loan with no early repayment charges, get the lease extension process done, that will increase the value of the property. Once all that is done you can then complete the remortgage and use the mortgage to pay off the loan, but it will depend on your affordability, LTV etc.

Thanks. I will find a broker regardong this snd seek for advice.