Lease extension: 63yrs. left, £50 ground rent, remortgage?

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    Lease extension: 63yrs. left, £50 ground rent, remortgage?

    Please help
    My lease had 67 years left when we puchased it 2007
    Know 4 years have passed happy ones of course.
    would like to renew lease
    Value when puchased 220000
    took 100% mortgage with interest only
    mortgage know 232000
    63 years left on leasehold know
    property selling in street asking price 285000
    our flat stilll needs new bathroom and kitchen, everything else mint
    Value present around 265000
    we pay ground rent of £50.00 per year
    original lease purchased in July 1974
    god help me can we re-mortgage, in-corporating the new lease fee, etc for a new morgagte with new lease extended ? or just pay the fee the leaseholder sperately?
    IF anyone has some form of knowledge please reply and i will be no more a noob...

    #2
    You need to establish from the freeholder what they would want to extend the lease.

    Compare this to the statutory cost of a lease extentsion whereby the term becomes 153 years and the rent a peppercorn. Based on what you have posted it would be of the order of £26,000 plus around £2,000 in fees.

    If reasonable then accept otherwise consider making a Section 42 Claim, but be aware of the consequences before so doing

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      #3
      Originally posted by lizard74 View Post
      can we re-mortgage, incorporating the new lease fee, etc for a new morgage with new lease extended ? or just pay the fee the leaseholder sEpArately?
      You are the leaseholder. You pay the premium (= price) on completion, to the freehold reversioner.
      Yes, you can complete a simultaneous:
      a. Deed of Surrender and Regrant (= lease extension); and
      b. remortgage secured on newly-extended leasehold term.
      But first get proper professional advice from your solicitor (or e-mail me direct).
      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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        #4
        Also consider whether your lender will give you a good window to complete. The mortgage offer ideally needs to be for at least 6 months if not one year, as you will need to reach completion stage of the lease extension within this period.

        Most lease extensions in my experience take around 2-3 months with a lease extension by agreement. A lease extension under the Statutory procedure usually takes 6-9 months.

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