Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I’m hoping for some advice as to what if anything I should be doing in the near future so as to avoid a potential problem in the future.
I bought a leasehold flat in 1992 which I rent out and have done so for many years and I plan on doing so for many more years to come. The property is a converted house with just two units, one ground floor flat and one upstairs flat which is the one I own.
Looking back at the lease, it was a 99 year lease granted in 1988, so as of now I have 72 years remaining. As I understand it in the unlikely event that I may want to sell the property in 10 years time the remaining duration of the lease will be at a threshold where lenders may not be keen to lend.
The freeholder owns the ground floor flat and has done so since inception in order to protect his elderly mother who lives there although she has recently gone into care and now the freeholders grandchild now lives there.
I have approached the freeholder already to let him know that if he wants to ever sell the freehold I would like first refusal which he has agreed to but I don’t expect him to sell the freehold for as long as he owns the downstairs flat.
The freeholder is a reasonable person and only owns the freehold to safeguard his family’s interest.
So as time ticks by, the cost of a lease extension increases.
I am confused as to what if anything I could do or should do and what the implications will be for me further down the line if no action is taken. Am I sitting on a ticking financial time bomb?
Fortunately I am solvent and the property is unencumbered.
Many thanks in advance.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More