Shared ownership but only 87 years on lease

purply wrote: »

Hi all,
Hoping you can help. I have had an offer accepted on a shared ownership house (25% share).
I am fast learning the pitfalls of these kind of properties and I am in talks with the solicitor.
The lease is 87 years and I am looking into being able to extend the lease. Am I right in thinking it can only be extended up to 99 years? Is it all possible to buy the lease so I am the freeholder? (housing association owns the other 75%). I am new to shared ownership although I have owned a house before so I am trying to think about the long term implications.
Will I have to extend the lease every few years?
I am 41 and would be looking to get a mortgage (it would be a small mortgage). Just really looking for some advice and guidance.
Would really appreciate any help. Thank you so much!

Some people have leases that are 999 years long but whether this freeholder will extend it by that much I do not know.

I think it's unlikely the HA will sell you the freehold because it would be the freehold to the whole building, you would effectively become your own landlord and the landlord to all the other leaseholders as well. I think it's also unlikely the HA will sell you a share of the freehold so that you are joint freeholders. Would the current leaseholder be prepared to start the process of extending the lease otherwise I think I am right in saying that you would need to wait 2 years before you could start it. Your solicitor should know though.

Personally I wouldn't touch shared ownership with a short(ish) lease. Do you have a longer term goal of staircasing up to owning 100% of the leasehold?

You have no statutory right to extend the lease on a shared ownership property so you are at the mercy of the HA as to whether they will let you extend and at what cost.
Some HAs are reported to want to charge a full lease extension premium, as if you owned 100% equity, even though you only own a share, that would obviously be a very poor deal.