OpenRent Community

Lease Extension - Why Get One?

Hi everyone, I got this letter through the post and wonder whether it’s worth taking action or whether it’s just a marketing ploy. I own a flat in a 3-flat converted house. We own the freehold and have remaining lease of 77 years. Is there any reason why i should extend the lease given I own the freehold?
B

Sorry I don’t understand, how can you own the freehold but still have a lease of 77 years? The freeholder owns the land beneath the house, leaseholders rent from the freeholder landlord

Typically if a lease gets too low you have difficulty selling the house as mortgage providors won’t touch it, lower the lease gets the more it costs to renew it (i think)

I may be wrong

I thought exactly the same. The others in the building can have a lease but the freeholder does not give himself a lease. You are correct . the lower years left on a lease, the more it costs to renew

If you own the freehold on the full property then everything else is irrelevant “but do you”, you can’t have a lease as well.
Sounds to me like somebody is trying to make a quick buck.

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Do you own the freehold of the whole house or just a share of freehold with other leaseholders?

Looks like a scam letter.

If you own a share of freehold with the other occupiers then you may have a lease as well.

It is worth renewing because once the lease gets below eighty years, the value starts to dramatically reduce and after a while, if you wanted to sell it, it would be unmortgageable. Take advice from a solicitor who specialises in leases.

Thanks everyone - I own a share of the freehold. I’ll investigate the process for getting the lease renewed!

When there are less years on the lease, the Robles arose when you want to sell as lenders would not give mortgage.

Think of extending lease to 999yrs and it would be good to talk to other 2 owners of the other flats and try to extend the lease. As then legal cost might
Work out less.

I can only guess that you have a share of the freehold. In practice you and the rest of the flat owners own the freehold collectively trough limited company. The extension of the lease would be most beneficial if you want to sell as most buyers do not understand the legality of the situation and the small number of years left on the lease will put them off. In addition the mortgage providers don’t seem to care about the specifics and refuse mortgage to potential buyer as well when the property has less than 85-90 years left on the lease.

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Only reason to do this is if you may want to sell at some point. Short leases are not as saleable - most 99 years.