Leasehold - how many years remaing is bad?
Discussion
I've had an offer accepted on a flat, and made the offer on the understanding that the unexpired term on the leasehold was between 990 - 999 years (verbally confirmed by vendor and possibly estate agent... can't remember!)
Have just received and read the leasehold contract and it actually turns out that it's a 99yr lease with 81 years left... is this quite short? or quite acceptable?
I think I remember reading somewhere that anything less that 75 years would be problematic when selling but I might have been at the ajax again.
Grrr!
feckety feck etc.
Edited to say b*gger... can't even spell remaining!
>> Edited by pantscat on Friday 17th February 11:49
Have just received and read the leasehold contract and it actually turns out that it's a 99yr lease with 81 years left... is this quite short? or quite acceptable?
I think I remember reading somewhere that anything less that 75 years would be problematic when selling but I might have been at the ajax again.
Grrr!
feckety feck etc. Edited to say b*gger... can't even spell remaining!
>> Edited by pantscat on Friday 17th February 11:49
leasehold terms regarding mortgage applications only become a problem when there is less than 30 years more than the intended mortgage term remaining 
therefore property prices on leasehold flats with less than 55 years remaining start to dip (being as 25 years is the usual mortgage term)
therefore property prices on leasehold flats with less than 55 years remaining start to dip (being as 25 years is the usual mortgage term
)Go back and offer a couple of grand less as well for good measure - there is a big difference between 99 and 999. Getting a mortgage is no problem but selling the house on with under 100 years people tend to get a bit nervous.
Alternatively ask the vendor to pay for getting the lease extended.
Alternatively ask the vendor to pay for getting the lease extended.
pdV6 said:
I was under the impression that it was not possible to get new 999 year leases these days, 99 max, so 81 should be just fine.
If worried, you can pay a bit of cash and apply for a new 99 year lease I think.
We just did that in our mansion block. Had 125 year leases which had 70 to 80 years left and we all paid a few grand and got 999 year leases.
aldi said:
So what would happen if the lease ran out and you couldnt extend it for whatever reason? Game over, you loose? Hit the road jack and don't you come back? Goodnight Vienna? Auf Veidersain, Pet?
AFAIR the person with the freehold needs to get it extended or HAS to sell you the freehold when it runs out.
The usual figure for buying freeholds is about 20 times the cost of the leasehold.
I think
blueyes said:
I was under the impression that it was not possible to get new 999 year leases these days, 99 max, so 81 should be just fine.
If worried, you can pay a bit of cash and apply for a new 99 year lease I think.
We just did that in our mansion block. Had 125 year leases which had 70 to 80 years left and we all paid a few grand and got 999 year leases.
yeah, I brought a 125 year lease a couple of years ago
This is interesting...
I've just bought a flat with 70+ years remaining on the leasehold, but i've also got a share in the freehold of the property also (i've been told). I think 2 or 3 other people in the building also have a share. I think there are 6-8 flats in the block.
Whats the score there !!? I was told that when the lease is up for renewal i can avoid the hefty renewal fees !? Does anyone know what advantage i will have on the other freeholder that isnt a resident once its up for renewal !? I gather as a partial freeholder i have more say on building maintenence, ground rent rates and upkeep etc etc ?
Cheers
Steve
>> Edited by lockstock2sb on Friday 17th February 13:59
I've just bought a flat with 70+ years remaining on the leasehold, but i've also got a share in the freehold of the property also (i've been told). I think 2 or 3 other people in the building also have a share. I think there are 6-8 flats in the block.
Whats the score there !!? I was told that when the lease is up for renewal i can avoid the hefty renewal fees !? Does anyone know what advantage i will have on the other freeholder that isnt a resident once its up for renewal !? I gather as a partial freeholder i have more say on building maintenence, ground rent rates and upkeep etc etc
? Cheers
Steve
>> Edited by lockstock2sb on Friday 17th February 13:59
pantscat said:
Had a chat with my solicitor and have asked the vendor to extend the lease... I don't like being mis-sold things... Reminds me of the time I bought "Hornblower" on DVD, I was so disappointed!
good idea. i'd certainly be miffed if I was sold a 999 year lease and then found out it was actually 99 years...
and re: hornblower
minimax said:
Had a chat with my solicitor and have asked the vendor to extend the lease... I don't like being mis-sold things... Reminds me of the time I bought "Hornblower" on DVD, I was so disappointed!
good idea. i'd certainly be miffed if I was sold a 999 year lease and then found out it was actually 99 years...
and re: hornblower
Oi... You no show last night
vixpy1 said:
Had a chat with my solicitor and have asked the vendor to extend the lease... I don't like being mis-sold things... Reminds me of the time I bought "Hornblower" on DVD, I was so disappointed!
good idea. i'd certainly be miffed if I was sold a 999 year lease and then found out it was actually 99 years...
and re: hornblower
Oi... You no show last night
ahh f**k yes that's true...working until 6pm as normal then home only to realise that no clue what your number is as it's on my work PC
back to office then set alarm off as code's been changed since I last locked up...cue: total loss of speech power and abject rage as I wait until cops turn up with office minion in tow to silence alarm and rescue me from irate residents...slightly embarrassed about whole issue but hey ho so after that lot I just went home 
pantscat said:
Had a chat with my solicitor and have asked the vendor to extend the lease... I don't like being mis-sold things...
Very good idea, I see you're in (SW) London where the number of years left on your lease can be critical. As previously said, 75 years is the real cut off point (conveniently the exact number of years left on our flat in SW6 we unsuccessfully tried to sell last year) but at 81 I'd want a real discount as it would be a factor come resale time. And extending a lease isn't a fun or particularly cheap process so best avoided.
For some reason, London is a lot more critical on lease lengths, some mortgage lenders won't touch ones with less than 75 years, hence the problems there, yet seem happy to lend on 40 or even less years outside the big smoke. Go figure...
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