Has anyone extended a lease?

[Ihavenojob]

If so, was it easy? was it expensive? was it worth it? Looking at flats for our son, there are several with short leases, so cash buyers only. I thought I could buy one, renew the lease then sell it to our son as it would then be mortgageable for him. Another snag could be CGT, so wondering if it is worth the hassle. Flats are about £30-50k cheaper than one with a long lease.

 

[IT Minion]

The price is that low for a reason. I wouldn't touch it.

It won't make the property significantly more affordable for him, assuming 90% Mortgage that's only a £3-5k difference in deposit, you'd pay more than that on CGT so just gift it directly instead.

 

[securespark]

I think from memory you have to live there for a couple of years then you put in a formal bit of paperwork requesting extension of the lease and you get a price from the freeholder to do that.

 

[ETAF]

i know when my son was looking we looked at 4 flats in a converted house , each flat owned the freehold , but as he was buying it was discovered that some of the freeholders could not be found, in 1 case it was rented and the landlord had no idea , and his flat the freehold owner was 3 people before and no one new anything about where he was - i know the solicitor told him to walk away , as it was going to get very costly , i think he just had enough lease left to buy on a mortgage - BUT if he stayed for 5 years and then wanted to sell , it was going to be difficult.

I know a friend of mine earlier this year is in a block of 6 and they some of them are all buying the freehold - at least that was the plan, she didnt want to , and then 3 or 4 dropped out, and so that too is getting complicated

I suspect a DIY forum for that sort of question may not be the best place - i'm sure there are specialist forums for house/flat buying

anyway - beware , and make sure you know as much as possible before you start paying a solicitor - even my son on a fixed fee with a solicitor , still had to pay out quite a bit....

 

[Ihavenojob]

Thanks for the replies. I have been reading online about it- the 2 year timespan before you can apply for an extension, also there was going to be new legislation to make it easier and less expensive to extend a lease, but nothing has happened yet. As for the CGT, I explained to my son what it is, and that selling a second home you pay it on any profit. he said "sell it to me at a loss". Good thinking.

 

[Dork Lard]

I suspect a DIY forum for that sort of question may not be the best place - i'm sure there are specialist forums for house/flat buying

Since joining this 'ere DiyNot forum I have saved sooo much £money on professional advice from my solicitors, accountants, political analysts, war generals, structural engineers, civil engineers, mechanical engineers, medical doctors, psychiatrists, psychologists & epidemiologists . . . . To name but a few.

I can only think of one profession that we are lacking & that is a veterinary surgeon, & my house dog is sufferring from loose poop at the mo'.

 

[johnny2007]

Since joining this 'ere DiyNot forum I have saved sooo much £money on professional advice from my solicitors, accountants, political analysts, war generals, structural engineers, civil engineers, mechanical engineers, medical doctors, psychiatrists, psychologists & epidemiologists . . . . To name but a few.

I can only think of one profession that we are lacking & that is a veterinary surgeon, & my house dog is sufferring from loose poop at the mo'.

Your bull excretion is always at its best though...

 

[Dork Lard]

Your bull excretion is always at its best though...

Aha, a loose poop specialist has raised its ugly head & now we are complete.

Despite the fact that I don't actually own a bull, but if I did & its poop was not at its best, I know where to come to diagnose the problem.