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26-08-2014, 12:18 PM
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Lease extension on flats

Has anyone extended a lease at some time in the recent past?

We (all us residents) have received a personally addressed letter from a company specialising in managing lease extensions, and they've reminded us we only have 79 years remaining. They have invited us to a meeting in September to discuss the financial implication of ignoring a falling lease length.

I took a quick peek at our housing association's website re lease extension and the costs, before the premium is calculated, is extortionate, to say the least!

Do please bear in mind these are shared ownership properties so are not subject to a certain Act (100% ownership). There is a voluntary lease extension scheme.

Supposing I want to sell in the coming months, with only a 79 year lease remaining? Would it still sell? Of course I will have to go through the HA first, as they find buyers to nominate.

Do I want the trustees of my estate (when I pop me clogs) to go through the hassle of getting rid of my flat, if I don't do it first?

I've contacted the services residential mgr and she is putting my query through to the leasehold team. Didn't tell her I looked at their website in the meantime.

Thanks.
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26-08-2014, 02:20 PM
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Re: Lease extension on flats

What was your lease when you bought it Jazzi .?from programmes ive watched its usually 99 year lease,if you have 79 yrs left thats only a difference of 20 years , i wouldn't think its it worth spending s out on extending it yet ..A programme i watched a buyer wanted a leasehold property but with little lease left,the advice was to get it extended before buying , His solicitor did this for him without to much difficulty .
If you are being contacted by a firm , my guess is its to put money in their pocket not for your benifit.
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26-08-2014, 02:53 PM
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Re: Lease extension on flats

Originally Posted by Jazzi ->

We (all us residents) have received a personally addressed letter from a company specialising in managing lease extensions, and they've reminded us we only have 79 years remaining. They have invited us to a meeting in September to discuss the financial implication of ignoring a falling lease length.


Thanks.
I wouldn't worry unless you intend living until you are over the age of 129, it will see you out and what happens after that won't be concerning you.

All land in the ACT is leasehold and for a lot of the original blocks the 99 years recently expired so they just rolled the lease over for another 99 years.
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26-08-2014, 03:14 PM
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Re: Lease extension on flats

Yes, Eliza, it was a 99 year lease and it doesn't just roll over, Bruce, as far as I can see.

I downloaded my housing association's guide, and the fees ATM are:

Valuation fee
(Payable upfront() 425 + VAT

Legal/admin fee 1000 + VAT + disbursements

Nominal fee towards cost of
rewriting shared ownership lease 100 + VAT

Without disbursements, which I don't know the cost of, this is 1,830, without the cost of the premium of lease extension.

I don't know whether to try and sell now, with 79 years remaining, or give up the idea of selling and stay here till the day I die. Then let the Trustees deal with it, whoever they may be.
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Victors Mate
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26-08-2014, 06:06 PM
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Re: Lease extension on flats

Jazzi this will give you impartial information

http://www.moneysavingexpert.com/mor...end-your-lease
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26-08-2014, 06:35 PM
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Re: Lease extension on flats

Suffice to say-just pray. It`s a ruddy minefield. Been there when Jenny`s mother died. Leasehold,partners in the `company` set up to buy the freehold going behind others backs to mortgage for their share,leases not adding up so no work done on the property.

We cut and ran selling up for 150,000 in 1992-what price a 4 bedroom flat in Kensington now???
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26-08-2014, 07:27 PM
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Re: Lease extension on flats

My daughter has just, yesterday, sent the cheque off for extending her lease. what a faff and very expensive to boot!! Tried to warn them when they bought the flat that it was a ticking time bomb but would they listen?!
The other 3 have not done theirs yet and so can't sell, obviously unless they give them away!
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26-08-2014, 07:52 PM
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Re: Lease extension on flats

Originally Posted by cranberry ->
My daughter has just, yesterday, sent the cheque off for extending her lease. what a faff and very expensive to boot!! Tried to warn them when they bought the flat that it was a ticking time bomb but would they listen?!
The other 3 have not done theirs yet and so can't sell, obviously unless they give them away!
I don't think any of us who bought these flats gave it a thought about the lease running low. Or whether we'd still be here. The money I have in my savings is for my future retirement years, NOT to spend on valuations, lawyer's fees, admin fees, and other disbursements, whatever they may be. In other words, I don't want to throw it away.

Bit of a turmoil, this. I may just go to that meeting and see what happens. Bet nobody here turns up, they're a bunch of no hopers.

victors mate, I'll have a look at that link, thank you.
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26-08-2014, 07:59 PM
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Re: Lease extension on flats

I know Jazzi, we are all fuming about it but they want to move so had to do it really I would just say if you are going to do it, the sooner the better. If you're staying there I suppose it doesn't matter.
The cost get a lot more the shorter it is and yours is longer than theirs, 64yrs, was, so may not be so bad. Anyway can't hurt to go and have a nosey at the meeting.
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26-08-2014, 08:03 PM
10

Re: Lease extension on flats

Read some comments on that link in that while mortgage lenders aren't happy about low length leases, it is to be hoped that there are cash buyers about.

I'm going to wait till I hear from our leasehold team, or the marketing dept. about selling.
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