Leasehold - What happens when lease is up
Discussion
At the end of the Lease term the Landlord will serve you with a Schedule of Dilapidations,which will cover all of the breaches of the Lease covenants (usually repair, re-decoration, etc.)
You put all the damage (that you are liable for) right and then vacate the property, which reverts back to the Landlord.
If you don't carry out all of your repairing obligations, the Landlord can sue you for any resulting damages/costs.
You put all the damage (that you are liable for) right and then vacate the property, which reverts back to the Landlord.
If you don't carry out all of your repairing obligations, the Landlord can sue you for any resulting damages/costs.
simontrent said:
Looking to buy a leasehold flat. When the lease expires, do I have back the property or is there an agreed sale ? If so, at latest or original price ?
Assuming I can't/don't extend the lease.
Are you planning to buy with a mortgage?Assuming I can't/don't extend the lease.
Most lenders won't issue a mortgage offer on a property that has less than 60/65 years left to run on the lease.
LadyHayles said:
Aren't most properties like that on 99 year leases anyway - pretty sure most people won't be around to see the end of the lease!
People do advise not to buy anything with less than 75 years remaining on the lease. Probably difficult (if not impossible) to get a mortgage on something like that anyway??rah1888 said:
simontrent said:
Looking to buy a leasehold flat. When the lease expires, do I have back the property or is there an agreed sale ? If so, at latest or original price ?
Assuming I can't/don't extend the lease.
Are you planning to buy with a mortgage?Assuming I can't/don't extend the lease.
Most lenders won't issue a mortgage offer on a property that has less than 60/65 years left to run on the lease.
This is exactly what happened to me.
Bought a flat with only 65 years left and at that point the Abbey said.... 'we're not sure about this - we dont like it!'
However - the Leaseholders are a cool pair of old gimmers and they renewed it to 185 years... for free (aslong as I paid for the paperwork - about £300)
Mandat said:
To add to my previous post:
If you are buying a property with a very short lease term remaining, the purchase price should reflect that. Alternatively, ask the Landlord, whether a new Lease can be entered into at the outset.
Even better to try and get the existing leaseholder to sort a lease extension before the sale is completed.If you are buying a property with a very short lease term remaining, the purchase price should reflect that. Alternatively, ask the Landlord, whether a new Lease can be entered into at the outset.
Steamer said:
rah1888 said:
simontrent said:
Looking to buy a leasehold flat. When the lease expires, do I have back the property or is there an agreed sale ? If so, at latest or original price ?
Assuming I can't/don't extend the lease.
Are you planning to buy with a mortgage?Assuming I can't/don't extend the lease.
Most lenders won't issue a mortgage offer on a property that has less than 60/65 years left to run on the lease.
This is exactly what happened to me.
Bought a flat with only 65 years left and at that point the Abbey said.... 'we're not sure about this - we dont like it!'
However - the Leaseholders are a cool pair of old gimmers and they renewed it to 185 years... for free (aslong as I paid for the paperwork - about £300)
esselte said:
Steamer said:
rah1888 said:
simontrent said:
Looking to buy a leasehold flat. When the lease expires, do I have back the property or is there an agreed sale ? If so, at latest or original price ?
Assuming I can't/don't extend the lease.
Are you planning to buy with a mortgage?Assuming I can't/don't extend the lease.
Most lenders won't issue a mortgage offer on a property that has less than 60/65 years left to run on the lease.
This is exactly what happened to me.
Bought a flat with only 65 years left and at that point the Abbey said.... 'we're not sure about this - we dont like it!'
However - the Leaseholders are a cool pair of old gimmers and they renewed it to 185 years... for free (aslong as I paid for the paperwork - about £300)
An interesting thread as i was just thinking about my own lease - its on around 63 years remaining.
I think i have a distinct advantage in my case as i have a share of freehold (collective enfranchisement ?) Can anyone confirm that means i can effect issue myself with a 999 Year lease for a penny if i so desired (and the rest of the association agrees) ?
I think i have a distinct advantage in my case as i have a share of freehold (collective enfranchisement ?) Can anyone confirm that means i can effect issue myself with a 999 Year lease for a penny if i so desired (and the rest of the association agrees) ?
Edited by J-Tuner on Tuesday 16th December 14:42
Mandat said:
At the end of the Lease term the Landlord will serve you with a Schedule of Dilapidations,which will cover all of the breaches of the Lease covenants (usually repair, re-decoration, etc.)
You put all the damage (that you are liable for) right and then vacate the property, which reverts back to the Landlord.
If you don't carry out all of your repairing obligations, the Landlord can sue you for any resulting damages/costs.
Sorry, may be me being dim. I walk away with no money, right ?You put all the damage (that you are liable for) right and then vacate the property, which reverts back to the Landlord.
If you don't carry out all of your repairing obligations, the Landlord can sue you for any resulting damages/costs.
J-Tuner said:
An interesting thread as i was just thinking about my own lease - its on around 63 years remaining.
I think i have a distinct advantage in my case as i have a share of freehold (collective enfranchisement ?) Can anyone confirm that means i can effect issue myself with a 999 Year lease for a penny if i so desired (and the rest of the association agrees) ?
I think i have a distinct advantage in my case as i have a share of freehold (collective enfranchisement ?) Can anyone confirm that means i can effect issue myself with a 999 Year lease for a penny if i so desired (and the rest of the association agrees) ?
Edited by J-Tuner on Tuesday 16th December 14:42
I believe that is the case!I've just managed to sell my flat with 63 years lease left. Nieghbours selling have had to pay £7k to renew the lease (selling price - £85k). The landlords have you wrapped around their fingers and they tend to be t**ts in general.
Other properties on the same estate are having great problems selling now as they all have the same length left.
The advice given by knowledgable people I've spoken to is "DO NOT buy a leasehold house, unless you can afford to buy the freehold straight away" (I dont believe you can buy the freehold on a flat - only renew it, unless you arrange a collective enfrancisement with all other neightbours in your block as above).
Other properties on the same estate are having great problems selling now as they all have the same length left.
The advice given by knowledgable people I've spoken to is "DO NOT buy a leasehold house, unless you can afford to buy the freehold straight away" (I dont believe you can buy the freehold on a flat - only renew it, unless you arrange a collective enfrancisement with all other neightbours in your block as above).
Edited by Torquey on Tuesday 16th December 15:31
Edited by Torquey on Tuesday 16th December 15:32
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