How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Thomas Your Own Question

Thomas
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 6592
Experience:  BA (Hons), PgDip, Practising Solicitor
28732269
Type Your UK Law Question Here...
Thomas is online now
A new question is answered every 9 seconds

I have been unemployed for a year and i am forced into the

Customer Question

I have been unemployed for a year and i am forced into the position of selling my flat to pay off my debts. I can't get help to pay the mortgage because i remortgaged to pay debts off. I haven't paid the mortgage for the past two months.
My lease has 75 years left and therefore i am having difficulity selling the property.
I can't afford the costs and legal advice regarding extending the lease.
Is my only option to wait for the mortgage company to reposes and go into brankruptancy?

Regards
Paul
Submitted: 3 years ago.
Category: UK Law
Expert:  Thomas replied 3 years ago.

Hi,

Thanks for your question.

Most of the high street lenders require between 50-70 years remaining on
the Lease in order to offer a mortgage to someone so you may (may) find that a
buyer makes an offer, but obvioiusly it's not ideal.

If you cannot pay the landlord's fees to extend the lease and the fees
he has quoted are reasonable then the alternative is to market the property to
prospective buyers with the option to extend. You may choose to offer that you
will pay the fees to extend the lease from the proceeds of sale. So in effect
the purchase price will be reduced by the landlord's fees to extend because on
completion the extended lease documents will be executed and the landlords fees
paid from the purchase price sent to you by the buyer's solicitors.

You would obviously need to make sure the landlord is willing to do
things this way because normally they would ask for their fees up front.

Other than that you remain obligated to pay the mortgage repayments
under the mortgage, if you cannot meet these then repossession proceedings is a
possibility.


If this has been useful please kindly click accept so that I may be rewarded
for my time. If you do not click accept your money stays with the site and I do
not receive any credit for the time I have taken to answer your question.

 

 

I will answer your follow up questions you may have.

 



Kind regards,





Tom

 

Customer: replied 3 years ago.

Tom,

 

Thank you for your answer, most of the information i knew already.

As you have probably have already garthered from my original question my relationship with my landord is starined and they would make things akward.

Their tatics are probably to make it very hard for me to sell to a third party and are looking to buy the property on the cheap themselves.

This is where things become difficult if i was to drop the price to reflect the costs and the timescales involved the situation would probaly arise where i couldn't pay off my debts from the sell.( i realise this would also put of a prospective buyer because they would have wait two years to extend the lease)

Alternatively if somehow i could reach agreement with my landord to pay the cost involved in paying for the legal work and lease extension out the sell proceeds this would also put me in the situation where i couldn't pay off my the debts from the proceeds.

I think i was probably fishing to find a way out my situation without inccuring additional expenses and as you have probably guessed i am at my tethers end and starring down the abyss.

 

Paul

p.s whoever came up with the leasehold system needs shooting

Expert:  Thomas replied 3 years ago.
Hi Paul,

What debts are you referring to - your mortgage on the property or other personal debts?

Kind regards,

Tom

ps. It's a fairly common complaint.
Customer: replied 3 years ago.

Tom,

 

Thank you for corresponding with me, i appreciate some one to talk too.

 

Debts are Mortgage £37000 Credit cards £5500 Loan £1000

 

Offer made on poperty £65,000 So therefore i have probably estimated that either i would have to drop price to £55,000 hoping that the prospective buyers would be pepared to hold onto for two years before selling property.iI don't think this is in their plans.

The likelyhood off the freeholder puting off their costs and accepting monies from a proceeds from the sell is about 1%

With Estate Agents costs and legal fees being higher than normal becuase property is leasehold(persuming a sell does go through). As you can see i am stuck in a very nasty situation.

 

Paul

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expert:  Thomas replied 3 years ago.
Paul,

No problem, it's fine.

I would make sure you correspondence with the landlord as to the cost of a lease extension is not in documentary form only.

If you think the costs of the landlord for extending the lease are unreasonable then you should state this to them and also that you are minded to apply to the Leasehold Valuation Tribunal for a determination on the costs of this. You can do this under the Leasehold Reform, Housing and Urban Development Act 1993. You can do this yourself:-
http://www.lease-advice.org/information/faqs/faq.asp?item=98

You can calculate the approximate cost of lease extension here:-
http://www.lease-advice.org.uk/calculator/

If you simply cannot pay the costs of extending the lease then you have to persist with finding a buyer.You need to impress upon the agent when they are marketing the property that the new owners will have the right to extend the lease if they wish to pay the costs of this.

If you cannot extend and cannot find a buyer then you are left with either taking a hit on the price by selling back to the landlord or waiting until the mortgage company take repossession proceedings. Their fees for repossession would be added to the amount they owe and generally they are after a quick sale rather than best price.

Your other debt is simply your private debt and if this still remains and you cannot pay and your creditors are looking at enforcement then you should look at entering an IVA.

I'm very sorry it could not be better news, but my advice is to persist with your negoations with the landlord and attempting to find a buyer.



If this has been useful please kindly click accept so that I may be rewarded for my time. If you do not click accept your money stays with the site and I do not receive any credit for the time I have taken to answer your question.

I will answer your follow up questions you may have.

Kind regards,


Tom
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 6592
Experience: BA (Hons), PgDip, Practising Solicitor
Thomas and 8 other UK Law Specialists are ready to help you
Customer: replied 3 years ago.

Tom

 

Thank you. You have been most kind.

I would use you agian.

Hopefully if i do it will be better circumstances.

 

Paul

Expert:  Thomas replied 3 years ago.
Paul,

Try to remain calm.

If the worst comes to the worst and you are made bankrupt then it is not the end of the world. Many bankrupts finds that it illeviates the stress.

You never know - you might find a job relatively soon and get back on your feet. Things can change quickly, though it may not seem like it at the time.

I wish you the best of luck.

Kind regards,

To,

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
< Last | Next >
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
  • I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks! Ms. Baker Alfafar, Spain
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie USA
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
 
 
 

Meet The Experts:

 
 
 
  • Ben Jones

    Solicitor

    Satisfied Customers:

    8364
    Specialist in UK Law with expertise in UK Employment Law
< Last | Next >
  • http://ww2.justanswer.com/uploads/venkoj/2010-02-20_133027_ben_pic.jpg Ben Jones's Avatar

    Ben Jones

    Solicitor

    Satisfied Customers:

    8364
    Specialist in UK Law with expertise in UK Employment Law
  • http://ww2.justanswer.com/uploads/CH/chathamchamber/2011-4-24_191833_1.64x64.jpg INC's Avatar

    INC

    Solicitor-Advocate

    Satisfied Customers:

    3850
    LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
  • http://ww2.justanswer.com/uploads/taratill/2010-03-09_111600_phpsik04M_c2AM.jpg Jenny Mackenzie's Avatar

    Jenny Mackenzie

    Satisfied Customers:

    2612
    Over 10 years experience in general legal matters
  • http://ww2.justanswer.com/uploads/matthewjones/2009-9-7_20342_picture_007.jpg Matthew J's Avatar

    Matthew J

    Solicitor

    Satisfied Customers:

    323
    4 y PQE (Partner) - Commercial / Residential Property & Property and Civil litigation experience
  • http://ww2.justanswer.com/uploads/TO/touchwoodsden/2013-12-6_91518_MeforJA.64x64.jpg Stuart J's Avatar

    Stuart J

    Solicitor

    Satisfied Customers:

    5198
    PGD Law. 20 years legal profession, 6 as partner in High Street practice
  • http://ww2.justanswer.com/uploads/RE/Remus2004/2012-4-22_93111_2bigstockPortraitOfConfidentFemaleL6943985.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    24742
    Over 5 years in practice.
  • http://ww2.justanswer.com/uploads/JO/Josh2010/2012-4-29_19490_GettyImages80121770B.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    6561
    LL.B (Hons), Higher Prof. Dip. Law & Practice
 
 
 
Chat Now With A Solicitor
Thomas
Thomas
Solicitor
6592 Satisfied Customers
BA (Hons), PgDip, Practising Solicitor