Leasehold Extension
Discussion
Need some legal advice.....
Background
I own a flat in an Edwardian house which was converted into three flats sometime in the 80's. The owners of the three flats have since bought the Freehold so we all own a third share of the Freehold too...I believe this is known as a Shared Freehold. The leases are now approaching 70 years and need to be extended as mortgage companies typically won't look at properties with leases under 70 years.
Question
What is the best way to extend this ? One law firm has said they should draw up new leases and another has said that a "simple" Deed of Variation will suffice. Neither has seen the lease as of yet but it's a fairly typical lease of the period...certainly the plans themselves look like something a 12 year old could draw up so definitely would not meet current Land Registry requirements. Obviously don't want to spend more money than is necessary on this but absolutely want to do it properly given that it's an asset worth a decent six figure sum. Given the term of the lease is obviously the most critical part of it is a deed of variation sufficient to extend it ?
Background
I own a flat in an Edwardian house which was converted into three flats sometime in the 80's. The owners of the three flats have since bought the Freehold so we all own a third share of the Freehold too...I believe this is known as a Shared Freehold. The leases are now approaching 70 years and need to be extended as mortgage companies typically won't look at properties with leases under 70 years.
Question
What is the best way to extend this ? One law firm has said they should draw up new leases and another has said that a "simple" Deed of Variation will suffice. Neither has seen the lease as of yet but it's a fairly typical lease of the period...certainly the plans themselves look like something a 12 year old could draw up so definitely would not meet current Land Registry requirements. Obviously don't want to spend more money than is necessary on this but absolutely want to do it properly given that it's an asset worth a decent six figure sum. Given the term of the lease is obviously the most critical part of it is a deed of variation sufficient to extend it ?
been a while since I've ever had anything to do with leases etc, but if all you want to do is extend the term, the deed will do the job.
if you want to "modernise" the lease, or if anyone has knocked their flat around and the plans have changed, or if you have agreed new terms in respect of who pays what (a bigger flat may pay more) then a new lease is the way forward. if the lease extension now triggers registration (which from what you say is the case) to HMLR you will end up getting a new lease anyway...
shouldnt cost more than a few hundred quid in any case...
if you want to "modernise" the lease, or if anyone has knocked their flat around and the plans have changed, or if you have agreed new terms in respect of who pays what (a bigger flat may pay more) then a new lease is the way forward. if the lease extension now triggers registration (which from what you say is the case) to HMLR you will end up getting a new lease anyway...
shouldnt cost more than a few hundred quid in any case...
Edited by princeperch on Wednesday 2nd February 23:13
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