Anyone know about lease extensions?

[AnitaPNesse]

A prospective Buyer's put an offer on my property. They've offered what I would sell it for but the caveat is that they want me to sell it with all of its contents (it's a rental) and they want me to apply for a lease extension. They have said that, although they want me to start the process to apply for a lease extension, they don't want me to pay for it. I'm tempted to counter with 5K above their asking price, but the agent is advising (pressuring) me to accept this offer. I was just about to call the solicitor I plan to instruct for the sale, but I feel they'll not want to talk me out of a sale....so I thought I'd ask here.

Regarding the lease extension, I don't have any experience applying for one (the freeholder is the council as well) so I get the feeling that it won't be straightforward and may possibly take a very long time. Am I right in thinking that if I am the applicant I can in some way be held liable to pay for it and that it will complicate the sale? Or will it be quite straightforward in that just as long as we stipulate all of these 'terms' in the sale then I'll be covered?

I'm aware that there's the risk of being gazundered or buyer tactics – and I welcome any advice on how to avoid being gazundered – but having to start the lease extension is something I don't feel comfortable about. Are my concerns justified or is it quite straightforward and low-risk as the Seller of a property?

Any advice is appreciated.

How many years are left on the lease?

I think it's not an unreasonable request if the lease is relatively short - you have to live somewhere for two years before applying for a lease extension which is probably why they want the process started by you. The shorter the lease, the most expensive it becomes to extend.

If the lease is approaching 80 years left they are absolutely justified in asking for this. As new owners they have to wait for 2 years to start the process and if in the intervening time it’s fallen below 80years they’ll end up paying a lot more for the process. Your first step should be to contact your council’s leaseholder department and ask them what you need to do to get started. There probably will be some legal fees for you to pay to start the process but you won’t have to pay the council for the extension, the buyers will.

I bought a flat with the lease being extended. The vendors paid for the lease extension (it was a hefty fee of about £20k), but flats with the extension went for £20k more than those without, so was factored in the price.
I believe that you have to live in the property for 2 years before you have the right to extend the lease (presume this is still the case) which is why they want you to kick off the process.
How long is left on the current lease?
May be worth kicking it off, but all costs added to the sale.
The lease extension on my property took forever, but the £20k was held with the solicitor, so the vendor had nothing left to do once the sale of the flat was completed.