I'm thinking of buying a property. I spoke to the freeholder re extending the lease because by the time I will have owned it 2 years, the lease will drop to 79 years and I will have passed the marriage value threshold. The freeholder was honest and said he had no plans to respond to a request to extend this before the 2 years are up. Is it possible to just extend it by say 20 or 30 years and pay less? I'm worried that at 272,000 now, the lease will cost me 15k to extend in 2 years and I dont know where id find that. Worth mentioning the vendor cant extend - she's owned it for 15 months
Thanks for your enquiry.
Legally, either you (or in this case your Seller) has to have owned the Leasehold property for 2 years before acquiring a right to a Lease extension (of 90 years), as you may know.
Therefore the Freeholder is under absolutely no duty to agree to a Lease extension of any type until this criteria has been met, I'm afraid.
Freeholders are often happy to by pass this rule and agree to an extension of 90 years or indeed 20/30 years, provided a figure can be agreed.
You are therefore very much in the hands of the Freeholder, and if he is not prepared to play ball, there won't be anything you can do to force his hand.
I am sorry this sis not the answer you were looking for, but if I have assisted, I would be grateful if you could leave positive feedback.
Sorry- I didn't answer you fully.
Legally, the Freeholder need only grant you a 90 year Lease extension I'm afraid.
Of course, if you can informally agree a smaller Lease extension, then great, but this comes down to the Freeholder and he doesn't have to agree to it.