Purchasing property and renewing lease?

by Readers Question

15:52 PM, 20th June 2016
About 2 years ago

Purchasing property and renewing lease?

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Purchasing property and renewing lease?

I would like some advice regarding purchasing a property the property is made up of a ground floor cafe located in a good location in a sea side town centre, which has 3 floors above the cafe, with 6 bedroom accommodation. However, the lease is only 21 year lease due to expire July 2027.leasehold advisory service

I would like to know the requirements and process regarding renewing the lease I think that the shorter the lease is the more expensive it would cost to renew it.

Also would it be advisable to request the lease renewed prior to purchasing the property, or can I make a request to the seller to extend or renewal the lease prior to purchasing?

Any advice would be appreciated.

Tony



Comments

Neil Patterson

15:55 PM, 20th June 2016
About 2 years ago

Hi Tony,

Please do take advice from your solicitor. However, the Leasehold Advisory Service is the best place to start and they have a Lease extension calculator. Please see >> http://www.lease-advice.org/calculator/

Tony Lilleystone

15:28 PM, 21st June 2016
About 2 years ago

It looks from your post as if the whole of the building is comprised in a single lease. If that is the case then it may be a business lease which you wouldn't be entitled to extend.
Owners of leasehold houses may be entitled to a lease extension or to buy the freehold but it doesn't look as if this property falls within the definition of a house.
Business leases may be renewable under Part II of the Landlord and Tenant Act 1954.

BP Surrey

9:21 AM, 22nd June 2016
About 2 years ago

I suspect it is a normal business lease. If the lease is held within the Landlord and Tenant Act then you have a right to renew the lease when the existing lease expires with one or two exceptions including if the freeholder wishes to develop the property. You need to get a copy of the lease and take it along to a solicitor who deals with commercial leases who will answer your questions.

One other point, the lease has eleven years to run and in my experience, not many people would sign up for more than ten years these days in any event.


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