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Thomas Judge
Thomas Judge, solicitor Advocate
Category: UK Property Law
Satisfied Customers: 32990
Experience:  award winning lawyer with over 15 years experience
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Stuart I am buying a property with 66 years lease which

Customer Question

Hi, Stuart
I am buying a property with 66 years lease which orinally was to be extended buy the vendor ( applying for a new lease and then the benefits under the section 42 would have been transferred to me) ,.The vendot has not applied for the process yet, meanwhile I have been granted the motgage with 66yeras anyway and as I am selling mine and buying two new properties at the same time the wait can affect the chain.The estate agent is suggesting buying the property as it is and extending the lease myself 2 years later.What dangers do I run here?
Submitted: 1 year ago.
Category: UK Property Law
Expert:  Thomas Judge replied 1 year ago.

Let me see if I can help for you. The difficulty you may have is either locating the freeholder and then agreeing with the freeholder a cost (without the need of going to a tribunal) for the lease extension and also his costs. The costs could be very high and as such you would not have got the best bargain on the purchase. You could lose money basically or pay too much for this property. Therein it could prove very difficult to sell the property for the sum you paid for it. I would be very happy to discuss further, but please remember to rate positive

Customer: replied 1 year ago.
if the estimate on the extention on the property currently is 20K ( property valued at 300K|) how much will it be in two years time when the property will be woth 400K?
Expert:  Thomas Judge replied 1 year ago.

Thats a specific question for the surveyor - taking into account this property, the market, the value and the fact that the lease has been reduced by two years. There are specific calculations which they take into account. The key in part is to get some agreement (if you can) from the freeholder in writing that a figure can be agreed with him now. Happy to discuss. Please rate positive

Expert:  Thomas Judge replied 1 year ago.

I hope that this helps. Please rate positive.