Buying and extending a lease

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    #1

    Buying and extending a lease

    Hello.
    I was wondering if somebody could help with me with what is probably a frequently asked question here.

    We are in the process of buying a property. The agreed price was £215,000 with 84 years on the lease. However we have now found out that the lease only has 78 years remaining.

    The ground rent is currently £50 per annum

    After reading about leases, it says the premium jumps up as it is under 80 years. Would anyone be able to advise on how much this would be and how much the property would be worth with the shorter lease?

    Also how long would it take to extend? Could the current owners extend before selling. If they did would we have to wait for this to be done before completion?

    There are a few questions here but I hope someone can help.

    T
    Tags: lease
    #2
    I was wondering if somebody could help with me with what is probably a frequently asked question here.
    it is so do a search...
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

    Comment

      #3
      You can calculated the rough cost of statutory 90 years lease extension using the method posted in LZforum thread No.11080 posted by our expert sgclacy a few years ago. Using your figures , I calculate the rough cost of lease extension at about 6K. ( but does not include valuation by surveyor for the freeholder.)

      You can download the free guides on lease extension procedure and calculating the cost of lese extension from www.lease-advice.org

      To avoid the normal 2 years waiting period after you become the leaseholder, you can negotiate for the seller's solicitor to serve the legal notice on landlord to claim a statutory lease extension during the short period after exchange of sale contract and before the completion date of sale. But you need to employ a conveyancing solicitor with previous experience of this procedure as its easy to make a mistake and invalidate your claim for lease extension.

      Comment

        #4
        Thanks Gordon999 for the response.

        On average how long would serving a statutory lease extension and the process take?

        If not does any one have any advice on how much to negotiate on the sale price, taking into account the shorter lease.

        Thanks

        Comment

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