Residential Lease extension - is it taxable

[bga]

I am currently in negotiations to get a lease extension for a flat I am buying. (unfortunately unable to buy freehold). A mate of mine is under the impression that if I extend the lease (from 70 yrs unexpired to 125 years) I need to pay tax on it in the same manner as Stamp Duty (except at a higher rate). Does anyone know if this is true? It would be great to know if just to confirm if he's right or wrong.

cheers
alex.

[stevieb]

bga said:

I am currently in negotiations to get a lease extension for a flat I am buying. (unfortunately unable to buy freehold). A mate of mine is under the impression that if I extend the lease (from 70 yrs unexpired to 125 years) I need to pay tax on it in the same manner as Stamp Duty (except at a higher rate). Does anyone know if this is true? It would be great to know if just to confirm if he's right or wrong. cheers alex.

My advice is never buy a leasehold unless you can have a share of the freehold at a later date.

Sorry cant be more constructive best to give a solicitor a ring they will give advice free over phone, but wont be leagally binding

steve

[bga]

stevieb said:

My advice is never buy a leasehold unless you can have a share of the freehold at a later date. Sorry cant be more constructive best to give a solicitor a ring they will give advice free over phone, but wont be leagally binding steve

I'm speaking to my solicitor tomorrow, I just wanted to get an idea.
The current lease terms are pretty good, especially around the maintenence responsibilities and timescales. I also have it in writing that if the other tenants wanted to, the freehold would be sold at a reasonable price.

alex