Extending the lease

Required Reading


  


Extending the lease


Buying the freehold does not, however, mean that all your problems are necessarily over -they could be just starting. The responsibilities of running the block will now be yours and your neighbours, and life could become unpleasant if they refuse to pay their share of the maintenance costs.

Another solution, which would circumvent these problems, is simply to negotiate an extension of the lease. Again, a valuer may be required to help you arrive at a fair price; but unfortunately there's nothing that can be done if your freeholder sticks out for a higher one.

A Private Member's Bill, aiming to give flat leaseholders the same rights as possessed by house leaseholders, failed to get through Parliament in 2012. It is possible, however, that such legislation will be reintroduced in the near future.

Finance

Whether you are seeking to buy the freehold or simply extend the lease, you may need outside finance to do so. In that case, your building society would probably be willing to add the requisite amount to your mortgage.


Buying the lease


The first option is to get the other leaseholders of your block together to buy the lease. The most sensible way of doing this is to form a limited company as the body that will actually hold the freehold and then grant yourselves as occupiers of the flats fresh, long leases.

The formation costs of the company are likely to be upwards of 1150 Most firms of solicitors will undertake the job for you more or less specialise in this sort of business. The Memorandum and Articles of such a company have to be carefully written so that there are provisions, for example, for every leaseholder to have an equal share in the freehold. They should also compel leaseholders to sell their share when they sell their . . .... see: Buying the lease


Current Mortgage Offers

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