Buying flat with 85 year lease - risky?
Discussion
Hi all,
As per title, I'm looking at buying a flat with an 85 year lease left. Will this make getting a mortgage hard (now or in near future) and thus could it be harder to sell in future?
What does a lease typically cost to extend? Apparently the freehold may be for sale soon - again, what would likely cost be? Just looking for very rough estimates.
First time buyer, so I know naff all here...hence very grateful for any advice from the learned scholars of PH.
Thanks.
As per title, I'm looking at buying a flat with an 85 year lease left. Will this make getting a mortgage hard (now or in near future) and thus could it be harder to sell in future?
What does a lease typically cost to extend? Apparently the freehold may be for sale soon - again, what would likely cost be? Just looking for very rough estimates.
First time buyer, so I know naff all here...hence very grateful for any advice from the learned scholars of PH.
Thanks.
craigjm said:
The bit that confuses me in your post is this -
What does a lease typically cost to extend? Apparently the freehold may be for sale soon - again, what would likely cost be? Just looking for very rough estimates.
If the property is leasehold that is different to freehold. Most flats are leasehold and there is a freeholder that issues the leases to the flat owners. Leases are usually for 99 or 125 years from a certain date and they diminish as in your case to 84 years. The leaseholder can apply to have their lease extended back to the original term and the freeholder will issue this on the payment of a charge based on length of years to extend by and other factors.
Then there is the possibility that the property could become "share of freehold" in which as each flat owner buys a share in the free holding and as such they are the freeholders all together in a group.
You also need to find out who the management company is and what the maintenance charges are. Also you will want to know what has been done on the properties in the last two years. One thing that can really ruin a great flat is an awful management company.
Probably as a result of my ignorance of the subject I've likely mixed up terminology. I suspect they're offering 'share of freehold' in future.What does a lease typically cost to extend? Apparently the freehold may be for sale soon - again, what would likely cost be? Just looking for very rough estimates.
If the property is leasehold that is different to freehold. Most flats are leasehold and there is a freeholder that issues the leases to the flat owners. Leases are usually for 99 or 125 years from a certain date and they diminish as in your case to 84 years. The leaseholder can apply to have their lease extended back to the original term and the freeholder will issue this on the payment of a charge based on length of years to extend by and other factors.
Then there is the possibility that the property could become "share of freehold" in which as each flat owner buys a share in the free holding and as such they are the freeholders all together in a group.
You also need to find out who the management company is and what the maintenance charges are. Also you will want to know what has been done on the properties in the last two years. One thing that can really ruin a great flat is an awful management company.
I have spoken to other flat owners in the development who couldn't speak more highly of the management company. They also charge pretty reasonable management fees.
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