Lease extension

[worriedseller]

In a bit of a panic, so coming here for some advice, please.

Currently selling a leasehold flat, 107 years left on lease.

My buyer wants to apply for a 200 year extension to the lease after completion.

Is this normal? And who would pay?

This is a probate sale by the way and I've already accepted an offer significantly below the asking price.

Many thanks!

Surely if they want to do it after completion then you just leave them to it? The property isn't yours anymore so why would you pay?

@Bedtimewoes91 that's my thinking but I'm wondering if they'll try to get a reduction in price anyway. My view is they wouldn't ask for me to pay a survey fee for example and I look at this in the same way! Thank you for replying.

Ok so I'm not entirely sure, but I think they have to own it 2 years before they. Can apply & that's why existing owners usually do the application, but the new others usually pay for it

@AutumnLeaves24 thank you for this information! That's helpful to know.

At 107 years, the buyer shouldn’t be worried about the lease, it’s only when it gets near to 80 years that it becomes more of a problem to sell/get mortgage

Tell them to extend it themselves in 2 years, no way you should be doing this

We just did this for our flat sale. We applied for the lease extension, but the new owners pay for it. It did slow things down a bit (as we had to wait for the information from the landlord) and meant we incurred slightly more in solicitors' fees (because of the extra work involved). But it all went through very smoothly. It's pretty standard stuff for a conveyancing solicitor to deal with, so yours should be familiar with the process.

@HippyKayYay & @avidteadrinker thank you both for replying.

You've all made me relax a bit now!

I am surprised that they asked for it after making an offer. Usually as part of the offer.

And lease extension is just for 90 years. Anything beyond more complicated. Is your buyer FTB or looking for a way out?

Be very firm to them or inform them through the solicitor and estate agent that you are happy to apply for the standard lease extension but they have to be responsible for that cost if they decide to pull out at any point during conveyancing.

@jinglebelljinglealltheway thank you.

Not a FTB, but elderly lady buying!

107 years is totally fine and I wouldn't be agreeing to extend. You can agree to start the process for them though.

We insisted on our seller extending the lease because it was at 82 years - it helped that they owned share of freehold and it was dealt with quickly and cheaply.

@kirinm thank you for sharing. Buyer wants to do this after completion so hopefully they'll see sense. It's been a tricky transaction throughout actually hence my panic when I received the latest "request"!! I feel a lot stronger now having read everyone's replies 🤗