O/T: Extending leases

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08-06-20, 15:28
Robin Friday's Ghost

O/T: Extending leases

The title is a bit tongue-in-cheek since 90% of posts are O/T in present circumstances :-)

We want to extend the lease on our flat and I wondered if anyone has any experience of this? We had a pretty awful experience with the solicitors we used to buy it so we won't be going through them for certain. And I suspect some solicitors specialise in this sort of work anyway.

Any advice or recommendations gratefully received :thumbup:
08-06-20, 16:30
IanD

Re: O/T: Extending leases

Quote:

Originally Posted by Robin Friday's Ghost

The title is a bit tongue-in-cheek since 90% of posts are O/T in present circumstances :-)

We want to extend the lease on our flat and I wondered if anyone has any experience of this? We had a pretty awful experience with the solicitors we used to buy it so we won't be going through them for certain. And I suspect some solicitors specialise in this sort of work anyway.

Any advice or recommendations gratefully received :thumbup:

Have you asked for a quote from the individual or company who own the lease? Unfortunately, they hold all the cards. Be prepared for a five figure sum plus you may have to go through their solicitors. The owners of the flats opposite my dad's house are extending their leases....£30k. Ouch. Good luck.
08-06-20, 17:21
Vindec

Re: O/T: Extending leases

Much depends on the nature of the flat and who owns the freehold. Is it a purpose built block or a converted house into flats for example. Possibly better for all leaseholders to buy the freehold at the same time as legal costs will be shared. However, if you live in a purpose built block you buying the lease alone could adversely affect the other owners as you will not be required to pay the management charge meaning other leaseholders would have to pick up the tab. The price will depend how long there is left on the lease; the shorter the time the greater the cost. It can be a very complex area but do some research first. When you are in a position to provide much more information I suggest you ask the question on the legal board of lemon fool.
08-06-20, 17:35
xsnaggle

Re: O/T: Extending leases

Also if you bought leasehold you should know how many years your lease runs for. Being in a flat beware of "Flying freehold". It's virtually worthless.
08-06-20, 18:46
goats

Re: O/T: Extending leases

Think I paid about 5k for one about 15 yrs ago. Think a lot of the flats involved agreed to it, around 20 or so.
09-06-20, 13:13
Igovernor

Re: O/T: Extending leases

Quote:

Originally Posted by Vindec

Much depends on the nature of the flat and who owns the freehold. Is it a purpose built block or a converted house into flats for example. Possibly better for all leaseholders to buy the freehold at the same time as legal costs will be shared. However, if you live in a purpose built block you buying the lease alone could adversely affect the other owners as you will not be required to pay the management charge meaning other leaseholders would have to pick up the tab. The price will depend how long there is left on the lease; the shorter the time the greater the cost. It can be a very complex area but do some research first. When you are in a position to provide much more information I suggest you ask the question on the legal board of lemon fool.

In a block of flats you cannot individually buy a the freehold, there is a percentage of all the leasholders that have to be met before you are able to collectively buy a share of the freehold, and after that you would have to form or employ a maintenance company to look after the property, one big adavantage that you would have is that you would not have to pay ground rent.:thumbup:
09-06-20, 14:41
Vindec

Re: O/T: Extending leases

Quote:

Originally Posted by Igovernor

In a block of flats you cannot individually buy a the freehold, there is a percentage of all the leasholders that have to be met before you are able to collectively buy a share of the freehold, and after that you would have to form or employ a maintenance company to look after the property, one big adavantage that you would have is that you would not have to pay ground rent.:thumbup:

Thanks. I wrote previously in far too much of a hurry. As a former landlord I came across this issue previously. That is why I suggested that in a block leaseholders should gather together and best all get involved. Otherwise the remaining owners who do not buy their freehold (and do not form part of the new management company) will be adversely affected. The law requires a 50% threshold to be met but for all practical purposes all flat owners should be involved. Of course in the OP's case we do not know the kind of flat he is enquiring about. Obviously the fewer number of flats the better.
13-06-20, 14:00
Robin Friday's Ghost

Re: O/T: Extending leases

Sorry I have only just caught up with your replies. I don't want to buy the lease, I just want to extend it. There's still a fair while to go but obviously the nearer you get to expiry the more it costs to extend it. I know I need to go through a solicitor. What I was asking is whether anyone has experience of a solicitor having done this for them - extending that is not buying. I expect the cost to be in 5 figures which is fine.
13-06-20, 14:23
xsnaggle

Re: O/T: Extending leases

Quote:

Originally Posted by Vindec

Thanks. I wrote previously in far too much of a hurry. As a former landlord I came across this issue previously. That is why I suggested that in a block leaseholders should gather together and best all get involved. Otherwise the remaining owners who do not buy their freehold (and do not form part of the new management company) will be adversely affected. The law requires a 50% threshold to be met but for all practical purposes all flat owners should be involved. Of course in the OP's case we do not know the kind of flat he is enquiring about. Obviously the fewer number of flats the better.

If it is only one flat is it a bungalow? :getscoat:
13-06-20, 15:36
Igovernor

Re: O/T: Extending leases

Quote:

Originally Posted by Vindec

Thanks. I wrote previously in far too much of a hurry. As a former landlord I came across this issue previously. That is why I suggested that in a block leaseholders should gather together and best all get involved. Otherwise the remaining owners who do not buy their freehold (and do not form part of the new management company) will be adversely affected. The law requires a 50% threshold to be met but for all practical purposes all flat owners should be involved. Of course in the OP's case we do not know the kind of flat he is enquiring about. Obviously the fewer number of flats the better.

I have no idea what the cost would be, but I found this article:thumbup:

Extending your lease has been a legal right to qualifying leaseholders since 1993. Leases will continue to get shorter and in some areas of London leases of 40-60 years are common place.

Increasingly legislation has been changing to benefit the leaseholder. For example qualification criteria have been relaxed and it is no longer necessary to live in the flat for 3 years or qualifying periods amounting to 3 years. You will need to own the lease for 2 years to qualify but do not need to live in the flat and can own it through a company. BUT, if you want to sell up, you can sell on your rights under Section 43 of the 1993 Act so the new purchaser does not have to wait 2 years to qualify.

Exercising the right requires a formal legal notice to be served on the Freeholder and all intermediate landlords.

Your statutory right is to an additional 90 years with ground rent reduced to a peppercorn rent