Lease Extension – Tax Implications?
4 years ago | 3 comments
Lease extension – can I do this myself?
12:01 AM, 3rd July 2023, 3 years ago
15
Hello, I own the freehold to the house and the leasehold to my flat. There are only two flats as it is a house converted. My lease has about 50 years left to run so I want to extend it and thought as I own the freehold and leasehold it would be straightforward forward but it seems I cannot do that.
Or can I? I have seen on this site a comment that I can extend the lease to myself and another comment that I cannot. I really am unsure how to go about this.
Thank you,
Sherroll
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6 years ago | 15 comments
Member Since November 2017 - Comments: 263
9:46 AM, 3rd July 2023, About 3 years ago
I’d be interested in any answers, as 2 solicitors have given conflicting advice and the land registry a third version as to what can be done.
Member Since November 2014 - Comments: 16
9:49 AM, 3rd July 2023, About 3 years ago
Hi
I was one of the ones you saw saying you cant, I couldn’t because I owned both upper and lower flats and they are Tyneside flats, so the upper owns the freehold of the ground floor and ground floor owns freehold of one above.
Yours sounds different and I would imagine that unless you are selling it you do not need to extend it, and when you come to sell it your solicitor will just need to do a lease variation on sale to extend the lease to the new buyer. I am transferring one of mine to my wife and doing the lease extensions on both as part of the transfer.
Hope this helps as I did not get any comments back so best of luck.
Ray Doyle
Member Since January 2015 - Comments: 1447 - Articles: 1
9:57 AM, 3rd July 2023, About 3 years ago
Yes you can as your wear 2 independent hats with no conflict of interest.
As the leaseholder you can either draft a surrender and regrant of the lease OR a Deed of Variation only amending the length of the term to 999 years (usual) and the ground rent to a peppercorn for you the freeholder to approve.
Then you as freeholder approve the draft.
You as leaseholder engross (type up the approved draft) 2 copies which are both signed and dated by the leaseholder (you) and the freeholder (you). Then register both at HMLR in the Title Registers of the Leasehold AND the Freehold. Separate fees for each Title.
Member Since July 2013 - Comments: 1266 - Articles: 1
8:22 AM, 4th July 2023, About 3 years ago
You can’t have the freehold and leasehold in the same name, that’s all. Because you can’t have a contract with yourself, it would be legal nonsense. This was probably why Ray could not do it not because of each owning the other’s freehold.
There are several ways around it such as someone else having a 1% share of the freehold.
Member Since July 2013 - Comments: 1266 - Articles: 1
9:13 AM, 4th July 2023, About 3 years ago
Presumably you want to extend it because you are remortgaging or planning to sell? Otherwise there is no need. The best option would be to to do it as part of the conveyancing process – make sure you use a solicitor who understands lease extensions, as not all do. They will explain the options.
Member Since June 2023 - Comments: 4
7:07 PM, 5th July 2023, About 3 years ago
I forgot to say that the lease is in my maiden name and the freehold in my married name and wonder if that makes a difference.
Member Since April 2021 - Comments: 189
9:11 AM, 6th July 2023, About 3 years ago
Unfortunately I think not as you’re still the same “legal” person. Transfer the freehold into joint ownership with your spouse with them holding 1%. I was in this exact same position and this is what my solicitor arranged.
Member Since April 2018 - Comments: 50
7:27 AM, 8th July 2023, About 3 years ago
Reply to the comment left by Puzzler at 04/07/2023 – 08:22
I have leaseholds in blocks of flats and also own the freeholds in the same name never had any issues
Member Since June 2023 - Comments: 4
8:59 AM, 8th July 2023, About 3 years ago
Looks like I have to see a solicitor which I was hoping to avoid.
Member Since January 2015 - Comments: 1447 - Articles: 1
9:46 AM, 8th July 2023, About 3 years ago
Reply to the comment left by Puzzler at 04/07/2023 – 08:22Sorry but rubbish. 1 person can own the freehold and could create x number of flats and have all the leaseholds in their name. It’s what Joe Bloggs the small builder does.