Buying property with short lease with section 42 served

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    Buying property with short lease with section 42 served

    Hi, seen lots of auction properties advertised which look like good deals sold with section 42 served with shorter leases; I assume if you're buying with a mortgage you could only buy them if lease length is 70 years or more as the lease extension process is done after the sale with all the potential 'to and fro' with the landlord driving to drive up the money they get and you trying to drive down the money you pay to them ? Has anyone done this ? any potential pit falls ?

    #2
    That's odd, I can't recall ever seeing a mortgage property subject to a section 42 notice (section 5b all the time) and why would you? Surely the lead time for auctions exceeds the 2 month notice response time anyway.
    Different matter if the extension terms had been agreed, in which case it should be simple to carry out the purchase and extension contemporaneously with a mortgage.
    Otherwise finance might be harder and I would definitely be wary....

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      #3
      the mistake people make buying short leases plus a notice is underestimating the cost of the lease extension. To Section 20z it would be typical for the sellers solicitor to undertake to serve the claim upon the property being sold under the hammer, ie at exchange at the request of the buyers

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