Lease extension and property sale nightmare

[Gullible33]

I have been trying to sell my leasehold flat for most of this year. I had stupidly allowed the lease to go under 80 years so it was going to be expensive to renew the lease. The estate agent assured me he would be able to sell it with the short lease (78 years) for a lower price.

There was some initial interest and a cash buyer made a reasonable offer which I agreed to and then dropped out. I was getting desperate to sell so accepted an extremely low offer from a local property company with the proviso that the sale would proceed quickly and that the flat was sold with the lease as it stood.

Two months later the prospective buyer is messing me around, employing delaying tactics and his solicitor has not responded to any of my solicitor's recent enquiries. The buyer told the estate agent that they are looking into a lease extension. I recently found out that the estate agent released the valuation document that I had commissioned from a surveyor for the purpose of the lease extension and presumably they are using that document to negotiate with the freeholder.

The document was released without my knowledge or permission. Surely they can't use it for their own purposes?

Withdraw from the sale due to the delays and then extend the lease yourself and then put it back on the market.

Have you calculated how much a lease extension may cost? If not, have a look here www.lease-advice.org/calculator/ (this is a government funded website that has excellent information regarding all aspects of leasehold properties).

Once you know what the cost will be to extend then you will know if you’re buyer is taking the p*ss. If they are, withdraw and remarket. Extending the lease yourself then selling may be the best option.

Always be wary of a cash buyer...they usually don’t go as quickly as they they claim they will!

I have a rough idea of how much the lease should cost. I am worried that the prospective buyer and solicitor have started negotiating with the freeholder using my valuation report.

The length of time it takes for a lease extension is worrying me as well.

That is interesting about cash buyers, it doesn't surprise me as this one seems to want to have his cake and eat it too!

I’m sorry to say I’m trying to extend a lease at the moment and the freeholder doesnt give a shit so I might have to take the statutory notice route.

I can see why a buyer would either take a huge amount off their asking price or pull out. Sorry.

As for the document, I would imagine they would need your persmission to use it but presumably the agent will argue it was done in good faith to help your sale. Did you discuss the document at the time? WhAt was signed with the surveyor?

Extend the lease yourself concurrent with a sale. Pay the lease extension premium and costs out of your sale proceeds.

There seems little point in prospective buyer attempting to negotiate with a freeholder with regards to a property he doesn't even own. It's difficult enough to get f/h to engage with leaseholder and I very much doubt they will waste time engaging with a "possible" buyer.
Also - be aware - an informal lease extension is never recommended. Freeholders love informal extensions as they often sneak in onerous changes to the lease terms e.g. onerous ground rent terms.
The National Leasehold Campaign Facebook group is a good source of support and advice.

“ It's difficult enough to get f/h to engage with leaseholder”

Is that normal? I paid for the survey four months ago. I can’t imagine trying to sell up at the same time. It took three months for the freeholder solicitor to acknowledge my request.

Yes it's sadly normal. The Freeholders don't care and we are fighting to get this market regulated which includes a legal time frame for Freeholders to respond to enquiries. At present this whole area is unregulated and fees/service charges uncapped, leading to widespread financial abuse.
The National Leasehold Campaign Facebook group is a wonderful campaigning, informative and supportive group of over 15,000 members.

@informedisgood

I thought the freeholder would please to get a chunk of o money for leasehold extension

I have to check with my solicitor tomorrow but I do think she’s probably doing all she can.

Are you going formal or informal route?

I took the informal route. I’m not sure at what point to give up and try formal.

To be honest you are always advised to go the formal route. Lease extension is a specialist area. Are you using a solicitor who is very well versed in leases? This is important as often freeholders will sneak in onerous clauses into a new lease!
A formal will cost you in fees but it is worth it as your freeholder will try for as much as he can get from you. Formal = a surveyor who will give you a proper valuation, although you will have to pay freeholder's valuation fees too I think.

Thank you
Solicitor asked me and as I know the freeholder I thought informal would be fine

Another flat in the block renewed last year without trouble.

I do have a proper valuation. I thought we were talking about informal vs serving a statutory notice, I think it’s called?

I’m ringing the solicitor later today.