Difficult seller?

ThisIsWeird

EssexHebridean said:

ThisIsWeird said:

EssexHebridean said:

It’s not quite as simple on the freehold lease extension as everyone just agreeing, but the share of the freehold/in the management co certainly makes life likely to be more straightforward. But to reiterate, there is no mortgage issue with a 105 years remaining lease - regardless if your mortgage is 15, 20, 25 years or even longer. You may have issues with remortgaging later (as in borrowing more against the property, not just changing to a new deal)  when a mortgage co might insist on an extension being done before they give further lending, but at the point you’re at now even that’s not likely to be a significant issue. 

Thanks, EHebridian. (Which Hebdridian?)

Would an indemnity policy be a suitable alternative, do you know?

Well eventually hopefully North Uist…but not for a few years yet, other than via as many visits each year as we can shoehorn in! 😁

And not really, on the indemnity policy thing. But that’s a good thing, because it means that there isn’t really a risk to indemnify against. Seriously -  105 years remaining lease is simply a non issue - it’s no different in real terms to one with 124 years on it. A lender who is happy to lend on leasehold at all will not be in the least phased by that duration. If it was 85 years remaining, there might be some twitching as it’s creeping closer to the point where an extension becomes problematic. Most likely even in that situation though the lender would simply make sure that the solicitor/conveyancer was making the client aware in writing about the requirement to extend inside the next few years. 

I have to say, 105 years would give me some pause. With all else being equal, I would not expect to pay quite as much for 105 as I would an identical one with 999 years. Why? Because after living there for 10 years, you'd be selling with only 95 years remaining - that's getting to the 'second-thoughts' stage for many potential buyers, especially if there was a separate F-Holder; they would know that at some point, likely during their tenure, they'd have to go through the unpleasant business of trying to increase the lease duration, and negotiating on this. I would expect it to start having an effect on the price, perhaps only a few %, but increasing each year.

But, I may be wrong on that.

Anyhoo - what are you like - stay on topic, man!

Ah, I'd assumed you were from the He-Brides. Like moi.

NameUnavailable

Share of freehold is good - the freeholders aren't going to want to exploit themselves by charging high service charges. However, I would wonder why the lease wasn't extended to 999 years before.

Don't take it for granted that it will be cheap to extend. The other freeholders could insist on the 'market' price for a lease extension from you, especially if some have already paid to extend their leases (do you know for a fact all are the same 105 years remaining?).

It would be best to resolve the lease issue when buying even if you have to pay some additional legal costs to do so.

EssexHebridean

You can run through various scenarios on lease extension on the Leasehold Advisory Service website - lots of other useful info there too for anyone considering buying a leasehold flat. https://www.lease-advice.org/calculator/

Hopefully it will serve to put your mind at rest! 

Sarah1Mitty2

Gavin83 said:

Unless there’s more to this story I can’t really see what the seller did wrong. They had a price they wanted, you had a price you wanted to pay. You couldn’t originally agree. That doesn’t make them bad people, nor you.

My advice would be to not get so emotional about it and consider it a business transaction. If you like the house and can get it for the price you want then go for it. Don’t reject it because the seller didn’t accept your original price.

It’s different if you agree a price and then they start to mess you about. Negotiation isn’t messing you about though.

Also don’t believe anything the seller says, regardless of how genuine they seem. Always conduct the necessary checks.

Excellent advice.