Cost of extending lease on flat...
Discussion
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
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
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...
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...
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.
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.
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