Process for extending a short lease?

[Ed209]

Hi All,

I am looking to bid on an investment flat which is going to auction. This flat has a very short lease though (about 25 years left), so I would obviously seek to extend the lease once I purchase the flat.

First of all, before the auction, who do I speak to to find out how much extending the lease would cost? And secondly how long is the extending lease process; I plan to turn this flat around in no longer than 6 months, so don't want to be caught out with a lease extending process that's going to take longer than this?

Thanks in advance

Ed

[Dougie_tps]

Hi

In relation to having the lease extended, have you spoken to the current Tenant?

A Solicitor will have to make the necessary changes to the lease, but I would be surprised if it cost more than a couple of hundred quid. It might take a couple of weeks to redraft, finalise and have the lease signed, it certainly shouldn't take much more-there isn't that much to it.

[Richard Webster]

Hi

In relation to having the lease extended, have you spoken to the current Tenant?

A Solicitor will have to make the necessary changes to the lease, but I would be surprised if it cost more than a couple of hundred quid. It might take a couple of weeks to redraft, finalise and have the lease signed, it certainly shouldn't take much more-there isn't that much to it.

This post has got it all wrong.

OP was considering buying the lease at the auction. If the lease has only 25 years left out of say 99 originally it will cost quite likely a five figure sum - in some areas it would be 6 figures. OP would need to take advice from a specialist surveyor and because a large amount is inviovled there could be quite an ragument over the figures withe freehodler so I would expect to spend something of the order of £4K just in legal costs on he argument quite apart from the actaul cost of the extension!

The flat would have to be very very cheap to justify the price. Problem is that somebody won't understand the implications and will bid a silly figure at the auction and find out later what a bad deal it was. That's why it is in an auction.

[Dougie_tps]

Originally Posted by Richard Webster

This post has got it all wrong.

Yes, that's a fair one. I admit I didn't read the post properly before I launched. Apologies for the mix up.

[Deano]

I saw on TV recently someone buying a flat with a short lease ... the estate agent suggested the cost of extending the lease would be greater than the purchase price for the flat. Tens of thousands I believe, as previously mentioned.

Something that hasn't been mentioned above, they also said that you have to own the property for two years before you can apply to extend the lease.