Hello and thanks for using Just Answer.
I am Al and am happy to assist you with your enquiry.
It won't make any difference at all- I am guessing that you and your neighbour are prepared to grant each other a Lease extension, free of charge, as and when the time comes. Therefore you can both decide to change the term of the existing Leases so both will have 999 years or the Deed can grant each property an additional 999 years to the existing Lease. Either way, it won't cause any issue to you or as and when you come to sell your property.
I hope this assists and sets out the legal position.
Please let me know if you require any further clarification.
Thank you for this. What I am querying is why we have to do it for free of charge. The first floor flat has lower number of years on the lease, hence their charge to extend the lease will be higher than ours. Now, mathematically this means, we would be better off. Lets say they pay 10,000 to extend and we pay 8,000 ( this is purely for the example as I do not know how to price the lease extension). Now if we own 50:50 freehold, we receive 5000+4000 in income back. Now we are 1000 better off as we paid 8000 to extend the lease at the start.
The question I have how much 15 years difference will make on charge to extend the lease. What I also picked up is that after 80 years marriage value rule kicks in, which substantially can increase the charge to extend the lease, hence our difference can be potentially higher. Is there any free on line calculator I can use to find out how much will the lease extension be for each of us based on number of years left on the lease.
The question has not been answered to the standard and I want you to cancel the request and also hope that I would not be charged for the service.