• Lease Extension

    By Guest on 21st Apr 2015

    I have a short lease and I cannot sell my property. I cannot afford the lease extension. The landlord has agreed to extend the lease at the point that I have a buyer if I undertake to pay for the extension out of the sale proceeds. How would this work from a conveyancing standpoint?

  • 1 Answers

    By Guest on 14/10/2016

    This is very common with lease extensions. You advertise the property as having the new term on the lease rather than the current short lease. You tell any potential buyer that the lease is to be extended as part of the sale process and you will be paying the premium from the sale proceeds. When you have a buyer you ask the freeholder to prepare a draft new lease. He will instruct a solicitor to draft the papers. Meanwhile you instruct a solicitor to deal with the sale and liaise with the landlord's solicitor and your buyer instructs hos own solicitor as normal. The landlord's solicitor will probably work on the basis that he gets paid whether or not the matter proceeds and as you will be paying his fee, you will need to pay some money to your solicitor up front which he will hold and will pay to the landlord's solicitor either on completion or if the matter falls through. Other than that it is just a normal sale.

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