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Leasehold extension rules?

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Hi

I was wondering whether anyone knows what the rights are about extending a leasehold for the leaseholder?

An estate agent suggested that you have to have lived in a property for 2 years before you have the right to extend the lease, although the freeholder may be amenable to doing so prior to this anniversary.

Anyone know whether this is true? Also, does anyone know how to value what the leasehold extension should cost?

Comments

  • Hey Vk2003,

    I've been looking into this recently as I have been encouraged to renew the lease (to improve the chance of a sale on my flat).

    The estate agent was right it is 2 years before qualifying for a lease extension. The Lease Advisory service have some comprehensive leaflets on their website - http://www.lease-advice.org/

    The legislation lays down a formula to work out the value of the lease extension. But looking at their leaflets you need to get some advice from an experienced surveyor before making an application. They should be able to give you an idea of what it would cost you - depends on market fluctuations, local prices, existing ground rent etc.

    Hope that helps
  • vk2003
    vk2003 Posts: 289 Forumite
    Excellent Phoenix.

    Thanks for the info and the link :)
  • Hi vk2003

    Yes, phoenix is right, I have been speak to my solitor on this and it does take 2 years, if you want this done quicker I would advise you to speak to the present owners of the flat and get them to contact the Freeholders and get a contract written up and quote how much they want for the renew the lease of the flat before you go ahead and purchase this or get the ven dor to take it of the asking price... remember it would be easier if they cqan do this before you move and will also save yourself some money'
    Good Luck !!! ;D
  • zain
    zain Posts: 336 Forumite
    Does anyone have a rough idea of how much a lease extension would cost? Obviously it depends on the number of years, value of property etc.. But what are we talking 5k, 10k ,20k?
    Does anyone have an example?
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