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  • The lease is 96 years currently so, though it's not a problem for our lender, it sort of is for me as I think I'll have to renew before I sell, probably in 5 or so years. I have got hold of one of the current directors of the freehold who seems confused that I would even think there could be any issue, which I guess is promising, but I made mistakes buying my current flat so don't want to make them again.

    I think I'll just have to talk this through with my solicitor, but thanks for the help. Just one more question, as you seem to know a lot - if the other directors take a dislike to me for whatever reason can they make it expensive for me to renew my underlying lease? Can they decide a charge, which as they're the majority shareholders, I'd have to pay to renew my lease?

  • They can make it more difficult, by refusing to agree the premium to be paid and forcing you to have it determined at the First Tier Tribunal which will cost money. But they can't just make up a charge for you to pay for the lease extension. The premium to be paid for the new lease is defined by the 1993 Act in Schedule 13. If you've got more than 80 years unexpired on the lease, it's likely to be a fairly modest sum, since no marriage value will be payable.

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