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Why does it take so long to extend the leasehold?

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I've just read it can take about a YEAR to extend a leasehold on a flat! :o

 

Why does it take so long when there is a calculator on the leasehold website that tells you how much the extension will cost?

 

So if you buy a flat to improve it, with the intention of selling it on within a couple of months, taking a year to extend the leasehold will put buyers off.

 

They never mention HOW long it takes on 'Homes under the hammer'.

 

Has anyone any experience of it taking less time and why does it take so long?

Edited by poppet2

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It sounds a bit drawn out to me. It does depend on the freeholder or their agent but really should be done in a few months or so.

 

It will greatly de-value it with anything under 80 years and practically impossible to get a mortgage on with anything around 50-60 years so it needs to be done.

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The calculator is only indicative isn't it?

 

Most flats won't require any permission from the leaseholder to "improve", and mostly it's houses on homes under the hammer.

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The calculator is only indicative isn't it?

 

Most flats won't require any permission from the leaseholder to "improve", and mostly it's houses on homes under the hammer.

 

The problem with the leasehold calculator is, if you have less then 40 (for London) or 50 years remaining on the lease, it will not calculate a figure. I don't know why this is the case! :confused:

 

This causes problems as you can't calculate how much it will cost to extend the lease, on these type of properties, prior to bidding. The only advice the LAS give is it could cost tens of thousands!

 

You'd be surprised at just how many flats and maisonettes are in auctions with 50 or less years on the lease. Many of these properties were owned by people who have lived there from the beginning of the 99 year tenancy, and have now died. Such properties are also in need of great improvement.

The only way the executors can sell the property is at auction as they are unmortgageable.

 

A good bargin at auction, hmm, until you bid, then realise after, that extending the lease could cost more than you paid for the propertyat auction, certainly if the property is in London. So not a good bargin after all.

Edited by poppet2

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The formula for calculating it is available online. It's a bit involved, but you can work out the number for yourself.

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The formula for calculating it is available online. It's a bit involved, but you can work out the number for yourself.

 

Can you give a link to that formula and calculate for a flat with less then 40 years remaining on the lease?

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The problem with the leasehold calculator is, if you have less then 40 (for London) or 50 years remaining on the lease, it will not calculate a figure. I don't know why this is the case! :confused:

 

This causes problems as you can't calculate how much it will cost to extend the lease, on these type of properties, prior to bidding. The only advice the LAS give is it could cost tens of thousands!

 

You'd be surprised at just how many flats and maisonettes are in auctions with 50 or less years on the lease. Many of these properties were owned by people who have lived there from the beginning of the 99 year tenancy, and have now died. Such properties are also in need of great improvement.

The only way the executors can sell the property is at auction as they are unmortgageable.

 

A good bargin at auction, hmm, until you bid, then realise after, that extending the lease could cost more than you paid for the propertyat auction, certainly if the property is in London. So not a good bargin after all.

Executors and administrators- as personal representatives- may well have statutory rights, but it's a bit complex.

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