Buyers mortgage rejected on 84 year lease

Eddie2023

eddddy said:

housebuyer143 said:

My mate has an offer while the lease extension is on going but it's taken 7+ months... It might not be smooth sailing even if you get the offer through. 

I suspect that's a statutory lease extension - and it's taken 7+ months because the leaseholder and freeholder are negotiating because they can't agree on a price.


The OP will be doing an informal lease extension with a Housing Association, and the price will probably be whatever the the RICS valuer values the lease extension at. 

It will probably be a "take it or leave it" price with no negotiation. So it's more a case of the solicitors checking everything, and then getting the right people lined up to sign the documents.

My daughter is extending her lease at the moment. She owns the flat 100% with a mortgage but the block is owned by a housing assoc. Lease was at 82 yrs and she's extending to 125 yrs 

She's used the "informal" route meaning the HA arranged a surveyor to visit and value the extension - their figure is non negotiable, but fair in our view. However, the surveyors' fee, the HA legal and admin fees plus her own legal fees are coming in at nearly double the lease extension cost ! Just something to be aware of

Process has taken 5 months so far and is nearly done