lease on a property

[northyshoes1]

A friend of mine had their one bedroomed flat accepted by a prospective buyer and everything seemed fine until the buyers solicitor picked up an issue with lease period being only 66 years left. After my friend reluctantly reduced the purchase price even more to try and keep the buyers hooked on they decided to pull out and my friend was left without a buyer and this problem with the lease. My friend contacted the management company regarding this to try and see if there was any way of increasing the lease period for a fee and they were somewhat not interested or were very unsure. My friend lives in a block with 11 other flats and so presumably all are in the same boat. What can be done about this as my friend doesnt want to get another buyer again only for the same problem to arise again. Help!....please - if anyone has experienced this what was the outcome?

[Velvetee]

You will probably have to get together with the other 11 flat owners and see if you can purchase the existing lease, so you all have a share of the freehold.

I'm not entirely sure if the law says you have a right to demand the sale of the lease from the owner or if you have to wait until it becomes available for purchase and then the owner has to offer the leaseholders first refusal.

A friend of mine is in a similar position and he and the other owners in his block are buying their lease, but most of his neighbours are complacent, which means he's having to organise everything, which is very stressful. I think they each have to pay �16K for their share.

Best thing to do, would be to book half an hour with a lawyer, who specialises in property, to see where your friend stands.

[whiskygalore]

There is a legal requirement for the freeholder to grant a lease extension of 90 years (in addition to the 66 years left). This is known as a statutory lease extension, see here for more details and the steps that need to be taken: http://www.lease-advice.org/legsframe.htm

Because the unexpired term on this lease has dropped below 80 years, marriage value will be taken into account when the surveyor employed to do lease valuation does his calculations.

The freeholder can grant a lease extension to your friend outside the terms of the 1993 Act, but if they are dragging their heels, then your friend can take the statutory route.

[baker210]

Your friend would be well advised not to buy leasehold at all. Many leases have been bought up by unscrupulous companies which go on to extort as much money as possible from leaseholders. They know how to circumvent the law, and in many cases cannot be contacted. Always buy freehold or don't bother at all.