Buying a house... Expired Lease

BulliteShot

I'm currently renting. I have a big interest in a local property but under further investigation, the lease was for 99 years and has expired.

What I would like to do: Pay the agreed price in cash. Have a contract agreement where this has to get sorted out within 2 years. Be able to do the place up at my own pace.

My solicitor said that this was too risky and that I should wait until the lease is sorted out. He said it would take about a year, but no way to really tell. So, after 2 months of nothing being progressed, I did. I pulled out of the agreement and explained the situation. I was told that it shouldn't take more than 3 months to be fully rectified.

3 months later... I phoned the estate agent up and nothing has been done yet. Their solicitor stated that "She doesn't want to do the work until a sale is agreed."

I have been recommended a different solicitor by the estate agent, who may be able to offer an option that suits me. However, I feel that it is the other side's solicitor who is not co-operating.

I think I'm going to contact the solicitor that has been recommended and see if he can provide a solution. However, is there anything I should be weary of?

Sleepy

Approach the owner directly?

StillWaters

I wouldn't touch this with a barge pole until the lease issue is resolved. You won't be able to raise a mortgage, so will need to pay cash. You will be in a very vulnerable position. Your solicitor is correct IMO, way too risky.

Victor

BulliteShot wrote: »

I'm currently renting. I have a big interest in a local property but under further investigation, the lease was for 99 years and has expired.

Is this the ground rent? I don't know about currently, but a few years ago expired ground leases were being bought out for one third of the property value.

For a €150,000 property, you could be paying another €50,000.

I have been recommended a different solicitor by the estate agent, who may be able to offer an option that suits me.

This is somewhat unprofessional and it is not in your interests to take someone recommended by the other side.

I can only assume that the vendor doesn't have the cash to pay of the expired ground lease. If you have your heart set on the property and are willing to get professional advice from your own estate agent and solicitor, then you could proceed on that basis, deducting an amount as advised by your estate agent for (a) sorting the expired ground lease and (b) the associated risk and costs.

Alternatively, there are plenty of less encumbered properties out there.

Marcusm

Make sure you find a solicitor who is an expert in land law rather than a conveyancer. If the lease has expired, it's possible that the current occupier's rights to the property consists only of a right to buy out the freehold, a right which may not be freely assignable. You might find that you buy nothing.

convert

Victor has highlighted something that raised alarm bells for me. An EA shouldn't be recommending a solicitor to you. While it may be a genuine effort to help you, you can't be sure that the solicitor is going to have your best interests in mind when advising you in your dealings with an EA who sent business their way.