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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Member Since January 2015 - Comments: 1447 - Articles: 1
9:52 AM, 8th July 2023, About 3 years ago
Reply to the comment left by Sherroll Foster at 08/07/2023 – 08:59
No you don’t have to see a solicitor. Do a Deed of Variation,not a Surrender and Regrant, much much simpler.
Get your ID verified using ID3 downloadable from HMLR website.
Get DoV Lease signed as a Deed and the Counterpart as a Deed.
Complete the HMLR registration form and pay them your £45.
And wait till they have registered it, you’ll know as they send you notification when done
Member Since June 2023 - Comments: 4
8:51 PM, 8th July 2023, About 3 years ago
Reply to the comment left by Judith Wordsworth at 08/07/2023 – 09:52
This document should NOT be used where the variation will result in the term of the lease being extended.
That is what I found when I googled Deed of Variation.
Member Since April 2021 - Comments: 189
9:03 AM, 10th July 2023, About 3 years ago
@Derek T and @Judith
Yes strictly you can – I did that originally when I bought for cash, technically this means the lease was cancelled although should I sell, it will still exist. However a lender will not lend on that scenario. If Sherroll doesn’t intend to borrow then why bother to extend?
I think if you need to ask an amateur forum then you need a solicitor – otherwise you run the risk of not doing it properly. If you are borrowing you’ll need one anyway.
It’s not what the small builder does, he issues the leases as the flats are sold to the first purchaser. And quite often they are defective such as not starting on the same date, having different financial dates fpr payment of rent and service charges etc. I am looking at one right now.
Member Since June 2023 - Comments: 4
9:50 PM, 11th July 2023, About 3 years ago
Reply to the comment left by Crossed_Swords at 10/07/2023 – 09:03
I do intend to borrow by releasing equity.
Member Since April 2021 - Comments: 189
8:19 AM, 12th July 2023, About 3 years ago
Reply to the comment left by Sherroll Foster at 11/07/2023 – 21:50In that case, you’ll need a solicitor, make sure you get one who knows about lease extensions as not all do. And you will probably need to put one or other into a different legal name, e.g. joint with spouse. This is to protect the lender although some will want to take security over both (Precise). Can you clarify if you own both flats? I have been assuming not and I am assuming you don’t want to include the freehold in the mortgage