Leasehold Sale - Lease term, ground rent, Deed of Variation

[viper987]

Hi,

I am currently selling my leasehold apartment.

The buyer's solicitor is requesting a Deed of Variation because:

1. The term of the lease is only 105 years,
2. The ground rent is over £250 per annum (£300).

Is this necessary from a legal perspective?
I understand this would incur significant costs and delays.

Thanks

[atticus]

Do you have a solicitor? If so, what does he say?

What variation is sought?

[viper987]

My solicitor says it's not required.
Apparently the buyer's thinks it is.
They're asking for a Deed of Variation (Lease Extension).

[atticus]

An extension of a 105 year lease seems an unreasonable demand to me. Surely the buyer knew the length of the remaining term when the price was agreed.

I'd be inclined to tell the buyer a firm no. How likely is he to walk away?

[viper987]

The estate agents mis-advertised it as 124 years.
I didn't check it at the time.
My solicitor has noted that lenders do accept lease terms of 105 years.

[atticus]

Lenders start getting jittery when it is below 80 years.

[viper987]

Thanks. They are a cash buyer as well, so not sure why that's even relevant.
Is there anything regarding the ground rent (issue 2) that would change the situation?

[atticus]

That I don't know. Ask your solicitor in the morning.