14 flats with only 50 years remaining on lease

by Readers Question

10:22 AM, 20th February 2015
About 5 years ago

14 flats with only 50 years remaining on lease

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14 flats with only 50 years remaining on lease

Bought these 14 flats approx. 8 years ago when the market was on the up with the idea of paying for the lease extensions through the increase in values over the following years. I paid around £80k each for them on interest only mortgages with a deposit of 15%. Now with only about 50 years remaining they are only worth about £50k (£75k with the extended lease). 14 flats with only 50 years remaining on lease

I am looking for advise as to what other readers would do in my situation.

Many thanks

George



Comments

George Harrison

12:44 PM, 20th February 2015
About 5 years ago

Reply to the comment left by "Ian Ringrose" at "20/02/2015 - 12:38":

Most of the mortgages are with a company that is not lending at the moment

Steve Masters

12:47 PM, 20th February 2015
About 5 years ago

Reply to the comment left by "George Harrison" at "20/02/2015 - 12:35":

I think this would mean there are three owners in each block and therefor you only represent 1/3 of the owners.

This right is granted under "Collective Enfranchisement", look up "Leasehold Advisory Service" for more information.

Tony Lilleystone

13:23 PM, 20th February 2015
About 5 years ago

Re comments by Steve Masters, there is a nasty provision in the collective enfranchisement legislation that says where someone owns leases of more than two flats in the same building they will not be considered as a "qualifying tenant" so would not be entitled to join in a statutory application to buy the freehold.

paul landlord

15:41 PM, 20th February 2015
About 5 years ago

Sorry to hear about your situation and to be the bearer of 'bad news.

Buying the freehold would be the best option then you can give yourself a 999 year lease at 'peppercorn' rates- for a quid!

But you have to have at least half the of the lease holders in total to make the purchase. Owning one flat counts as one vote, two counts as one vote and three can get you put out completely as an overriding interested party.

I am going through this process myself at the moment where I own two properties out of a block of 8.

The good news is that the freehold can be bought very cheaply- figures designated by the leasehold advisory tribunal- and can be far less than the extension prices chanced at by the freeholder. Get the other leaseholders on board. That is what I am doing.

Contact the leasehold advisory service for greater help

Good luck

George Harrison

16:07 PM, 20th February 2015
About 5 years ago

Reply to the comment left by "paul landlord" at "20/02/2015 - 15:41":

Paul thank you for your advise

George Harrison

16:18 PM, 20th February 2015
About 5 years ago

Reply to the comment left by "George Harrison" at "20/02/2015 - 16:07":

Paul does it make any difference if the properties were bought in a limited company

Ian Ringrose

17:44 PM, 20th February 2015
About 5 years ago

If the properties are in a limited company, then you need to take legal advice as the company may be trading var insolvent, that is a criminal offense for the directors.

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