As freeholder how do I extend my own leasehold ..

kristina_dannerfjord

Hello clever people. I am a little stuck - I am the freeholder of a Victorian property converted into 2 leaseholds.  I also own lease hold A. - What to my mind should be as simply as granted myself an extention (with legal costs) I have been told it involves leaseholder B though I can't see why !!

Leaseholder B changed ownership about 6 years ago and the new owner B purchased from me (the freeholder) a 99 year lease extension.

As leaseholder A (and freeholder of A and with 59 years left to run on the leasehold, I wonder if it would be prudent to extend my leasehold (A), although only it will be just legal costs to pay ? As I assume I as freeholder can grant an extension to my leasehold A ?

I have no mortgage on my leasehold A and do not intend to sell anytime soon….

eddddy

Yep - assuming that you are the sole owner of the freehold building, you can extend your lease, if you wish, to any length - for example, 999 years.  And you'd just have to pay your legal costs.


Who told you that it would involve 'leaseholder B'?  Do they perhaps think you have a 'Share of freehold' - i.e. you and 'leaseholder B' jointly own the freehold building?


Anyway, extending the lease would increase the value of your leasehold flat, but decrease the value of your freehold.


As you probably realise, a flat with a 59 year lease isn't morgageable - so the reasons to extend the lease would only really be if you wanted to get a mortgage, or sell to somebody who needed a mortgage.  (With the current 59 year lease, you'd only be able to sell to a cash buyer at a knocked-down price.)


If you're not wanting to mortgage it or sell it, there's no real need to extend the lease at the moment.

Jaybee_16

I did the same thing a few years ago. Owned the freehold to my flat and the flat above me. Used a solicitor to renew the lease of my leasehold flat to 999 years. Never notified the other leaseholder of the flat above mine as it wasn't going to affect them.

kristina_dannerfjord

Thanks Edddy, that sounds like good advice.  Yeah not sure whether the solicitor got the wrong end of the stick!  She knew the legal bit would cost £1,000 +vat! 

I suppose if i have a spare one grand I could extend the lease.  Or leave it.