Leases - Danger period - right to extension?

[fourwalls]

Have been Googling this subject but am still confused with all new leasehold legislation - sifting fact from non-fact!

I know there's a length at which a lease becomes harder to mortgage - i.e. when a marriage value becomes payable. What is the crucial number of years left?

Will be looking at a flat which I think has more than 90 but less than 100 - is that bad, how bad?

Also, is there now an automatic 'Right to extension/renewal'?

Do you have to own the property for X years to acquire this right?

Can the vendors apply for an extension (without excessive cost) and transfer the right to purchasers?

Sorry for so many questions thanks for any help!

[herhonesty]

my understanding given below:

I know there's a length at which a lease becomes harder to mortgage - i.e. when a marriage value becomes payable. What is the crucial number of years left?

• no hard and fast answer here as every mortgage lender has a different view - there's an RICS document which lists all their cut off dates but it was compiled in 2010 or something
  

Will be looking at a flat which I think has more than 90 but less than 100 - is that bad, how bad?

• the real cut off date to be mindful of is the 80 years one - if you go below 80 years and under the cost of extension is signficantly higher because of marriage value (another chestnut...)
  

Also, is there now an automatic 'Right to extension/renewal'?

-yes after 2 years ownership

• Do you have to own the property for X years to acquire this right?
  

• as above
  

• Can the vendors apply for an extension (without excessive cost) and transfer the right to purchasers?
  

• yes, they have to serve appropriate notice and have paid deposit on suggested extension cost ( circa 10% i think). You then have 6 months to complete transaction.
  

• Sorry for so many questions thanks for any help!

[GrandPoohBah]

herhonesty has it absolutely right. Bear in mind that a lot of new builds go with 99 year leases, so a lease with between 90-100 years left isn't unusual.

Having said that, the further away you are from 80 years, the cheaper it usually is to extend. If you go to the leasehold advisory service website they have a good calculator which estimates costs, and a guide to lease extension. It's //www.lease-advice.org.

[herhonesty]

i'd also add that the calculator is fairly misleading - in my case, I'm dealing with extensions which are 10k out. but the key is, the sooner you do it, the cheaper it is regardless of whether calculator is wrong or right.

[fourwalls]

Thanks all - much appreciated and has clarified situation a lot - will check out lease-advice calculator (bearing in mind potential for inaccuracies).