Cost of extending lease on flat...

[Dav_s]

Hello

Looking for some advice. I've seen a flat for sale that initially had a 99 year lease (starting from March 1987). It now has 69 years left, which I know is going to be an issue when it comes to getting a mortgage (worst case scenario, and if the price is right, I'll just have to buy it cash). Anyway, my question is this: does anyone have any experience of this scenario, and is there any way of approximating how much it should/will cost to extend the lease?

(It's market value is around £250,000)
.

Many thanks

[Nickyboy]

Can be up to £25k depending on various factors, i enquired when i put mine up for sale then found it still had 90odd years on it.

[Dav_s]

Thanks for the reply. Will go for the flat and report back if successful.

[superlightr]

check what the ground rent is each year? is it static or is there a clause saying it will double every x years? if so run a way.

[kingston12]

Put the details into this calculator:

http://www.lease-advice.org/calculator/

It should give you an idea, but bear in mind that you will have to wait two years before you will be entitled to actually extend the lease as a new purchaser. This can change the cost quite a lot.

If you are interested in the flat, it may be worth asking the seller to serve a Section 42 notice before selling it you and then assigning it to you (thus escaping the 2 year rule):

http://www.lease-advice.org/faq/i-am-considering-b...

[Claude455]

The Lease Advice Service is the formal route, and I believe they advise trying an informal approach in the first instance.

Ask the seller's solicitors to contact the freeholder asking how much a lease extension would cost and what the terms are. It's what happened when I sold my flat. I ended up extending the lease and the cost was part-baked into the sale price without the need to go down the formal route of issuing notices etc.

[p1stonhead]

Freeholder of my first flat added 50 years (to 125) for £500 (basically cover his legal costs). My flat was worth about £235k

Hope you get lucky.

[Alpinestars]

It should be c£15k.

Let me know if you want to know how to calculate it.