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If a flats lease has only 5 years left, what does one do to renew?

How much is a new leasehold in SW3?

Asked on Mar 10 2010, House Prices in London | Report content

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  • You would need advice on how to calculate the amount to pay but with only 5 years left it may be prohibitally expensive. There is a legaly defined formula which the freeholder has to accept which takes i nto account how many years left among other things a surveyor will be able to help you, If you need advice let me know as i can put you in touch withbnthe right people and their charges are very modest.

    Answered on Mar 10 2010, Report content
  • I think I am right in saying that below seven years remaining you cannot extend under the current legislation. Ask a solicitor experienced in enfranchisement. With only five years remaining you would have to treat the purchase price as if you are buying a rented flat but paying the rent all up front. No chance of a mortgage, though, so it would have to be a cash purchase.

    Answered on Mar 10 2010, Report content
  • This is perhaps something you already know but having a lease so short you would struggle to sell on the open market as this would not meet the criteria for high street lenders. As the first reply reads the cost of the lease extension is likely to be very costly and many people are not in a position to cover the expense. There are investors who buy properties such as yours with a short lease and we have sold similar in the past . If you would like to discuss further we are based in SW london and happy to help. CSJ Estate Agents

    Answered on Oct 7 2010, Report content
  • Short leases are fairly common in SW3 but 5 years is very short and the cost to extend will be high. If you are considering buying such a lease, get professsional advice before offering. You need to know what the flat would be worth with a good long lease and what it wlll cost to extend so that you know how much the flat is worth with the existing lease. Speak to a solicitor or specialist valuer about getting the vendor to serve a S42 Notice so that the benefit can be assigned to you on completion. Otherwise you will have to wait 2 years and there will only be 3 years left!

    Answered on Oct 15 2014, Report content

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