How do you extend a flat lease?

Question

I,m interested in buying a flat which has a 45 yr lease . I would like a morgage over 25 yrs but have been told by friends it would be hard to re sell in years to come. has anyone got any info thankyou..........

Answer 1

You have to speak to the owner of the lease. Its usually quite easy, you may have to pay a few hundred quid though. 99 year leases are the most common

Answer 2

Hard to sell in years to come ( WRONG ) it is already hard to sell. Anything that has a lease less than 75 yrs most mortgage companys wont lend on. So you are thinking of buying an unmortgageably flat!!!! If you do still want to buy it after what I have just told you then listern carefully the current owner as long as they have owned the the flat for 2 years they will have the right to extend it. But this could cost a fortune.

Some figures for lease extensions are simply pulled out of the air by the freeholder. The ones that I have dealt with range from £4,000 to as much as £28,000 and sometimes even more.

At the end of the day it is your choice but you have been warned and you wont be able to buy this place anyway unless you have cash.

Answer 3

You will need to contact the landlord. In any case, you aren't simply looking at a couple of hundred pounds - you're looking at thousands.

In any case, you would either have to get the current owner to extend the lease, or you have to live there for two years before you can do this yourself.

The attached web site gives a lot of useful information regarding leasehold, including the process of extending the lease.

Your friends are right. In any case, you would find it very hard to get a mortgage on this property as most lenders insist on a minimum lease of mortgage term + 30 years (which equals 55 years for most people). One particular lender won't lend on anything which has less than 75 years. Generally, anything with less than 80 years is borrowed time.

Answer 4

is this a lease (rental) or a home loan? if your buying, you should be able to check with different lenders and get the mortgage that you want. hardly anyone lives in a place for 45 years or even 25 years anymore. some mortgages will have a prepayment penalty if you sell it in less than like 2 years. i really don't see how the length of the loan would correlate to resale value. you should make money when you sell your home regardless (even though you may not make as much as you want due to slowing home market) do some research on the internet and find out more about mortgages before you sign anything.

Answer 5

Your friend is correct, & lenders also prefer a long lease. If the flat is in a block, it is usuall for the ground that they are built on to be owned seperatly by the "freeholder", and each "leaseholder" pays ground rent. The estate agent can probably put you in touch with the freeholder and it is unlikely to cost much to extend the term. Lenders prefer leasehold flats so beware of purchasing the freehold!

Answer 6

specific i think of it extremely is somewhat a sturdy theory to develop your lease, in case you sell the flat in 3 years, it ability you advertising a lease of purely seventy 5 years, yet once you develop the lease so which you're advertising a lease of 87 years and could earnings extra interior the fee to disguise the 7000 and extra, decide for it.

Answer 7

Write to or get your solicitor to contact the freeholder, and buy it.
I have done it and sold the property 2 years later and an easier sale was had, and it improved the sale price greatly.
Always buy if you can.

Answer 8

You have to negotiate with the Owner.