How to extend a lease when we own the freehold?

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    How to extend a lease when we own the freehold?

    Hi - I was hoping someone could clarify this scenario please?

    I am the owner of a flat (in a block of 4) and we set up a Ltd Management Company to aquire the registration of our leases from a company that was no longer trading. In effect we own and manage the freehold.

    In the past 2 years since this was actioned two of the flats have been sold on and the new purchasers have become directors. I was nominated at the time the Ltd company was set up as the management company secretary and in both of the sales the issue I have encountered (see after this) has not come up.

    However, I am in the process of selling and now at exchange stage and the potential buyer has an issue with the length of the lease which has 71 years left and wants this extended.

    Is this relevent as my solicitor seems to indicate that because the flat is a part of a shared freehold then the "normal" rules of marriage value etc doesn't apply? Even her solicitor seems to be of the same thinking as mine. I was under the impression the length of lease becomes less relevant if the freehold is owned in part?

    Can anyone shed some light on this please?

    Many thanks

    Jon

    #2
    Originally posted by jonathanjonesy View Post
    Hi - I was hoping someone could clarify this scenario please?

    I am the owner of a flat (in a block of 4) and we set up a Ltd Management Company to aquire the registration of our leases from a company that was no longer trading. In effect we own and manage the freehold.

    In the past 2 years since this was actioned two of the flats have been sold on and the new purchasers have become directors. I was nominated at the time the Ltd company was set up as the management company secretary and in both of the sales the issue I have encountered (see after this) has not come up.

    However, I am in the process of selling and now at exchange stage and the potential buyer has an issue with the length of the lease which has 71 years left and wants this extended.

    Is this relevent as my solicitor seems to indicate that because the flat is a part of a shared freehold then the "normal" rules of marriage value etc doesn't apply? Even her solicitor seems to be of the same thinking as mine. I was under the impression the length of lease becomes less relevant if the freehold is owned in part?

    Can anyone shed some light on this please?

    Many thanks

    Jon
    Irrespective of marriage value, a lease of 71 yrs is very difficult to sell or mortgage. As each lessee will have same problem, simply arrange for Co. to regrant each lease for 999yrs.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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