Ex­tend­ing a flat needs free­holder’s agree­ment on pa­per

Yorkshire Post - Property - - PROPERTY - John Rob­son

Firstly, you will need to tell the free­holder that a new lease by way of sur­ren­der and re-grant is re­quired in­cor­po­rat­ing a plan to Land Reg­istry ac­cept­able scale.

Or­di­nar­ily, a free­holder would charge a con­sid­er­a­tion pay­ment for this new lease as the ad­di­tional ac­com­mo­da­tion will add con­sid­er­ably to the value of your prop­erty.

How­ever, as the free­hold­ers have agreed to the loft con­ver­sion which has been car­ried out and are rel­a­tives, I as­sume they may forego such pay­ment.

An ac­cu­rate plan de­tail­ing the loft ac­com­mo­da­tion will need to be pre­pared by a sur­veyor to a Land Reg­istry ac­cept­able scale, usu­ally 1:100. This forms the ba­sis of the new lease and will be re­ferred to in that doc­u­ment re­plac­ing the plan to the orig­i­nal lease.

The new lease will de­tail the par­ties be­ing the free­hold­ers and your­self and any coowner. It will de­tail the ex­ist­ing lease. The de­scrip­tion of the ac­com­mo­da­tion de­scrib­ing the flat will be al­tered from the orig­i­nal one level to in­clude both lev­els and loft con­ver­sion rooms. If it is de­sired to also ex­tend the term of the orig­i­nal lease, for ex­am­ple if it only has a rel­a­tively short term left to run, usu­ally less than 70 years, a new term can be granted within the body of the new lease.

Again, the free­hold­ers would usu­ally charge for the grant­ing of a new term as it adds value to and in­creases the saleabil­ity of the flat.

This new lease will need to be pre­pared by the free­hold­ers’ so­lic­i­tors and I would con­sider it only fair that you agree to pay the legal fees for this.

Af­ter all, you are ob­tain­ing a fi­nan­cial ben­e­fit of not hav­ing to pay a con­sid­er­a­tion for the new lease.

Once ap­proved and signed, the new lease will form part of the con­tract pack­age pro­duced by your con­veyancer to send to the even­tual buy­ers’ con­veyance. If your flat is sub­ject to a mort­gage the new lease can be legally com­pleted con­tem­po­ra­ne­ous with the sale of your flat avoid­ing the ne­ces­sity of ob­tain­ing your len­ders’ con­sent to it.

How­ever, to avoid any de­lays it is im­por­tant the plan is pre­pared, the new lease drafted and agreed and hope­fully what could have been a ma­jor ex­pense to you will be sim­ply be an ad­min­is­tra­tive legal ex­er­cise.

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