Length of lease on share of freehold

caz1979_2

I am interested in buying a flat that has a share of freehold with a lease of 59 years remaining.

Can anyone advise on the implications of having such a short lease? Is this a bad thing? (I know it would be on a normal leasehold flat) Will it affect getting a mortgage? Or can I insist the vendor extends the lease before selling?

Any advice would be very welcome.

chickmug

http://www.lease-advice.org/

Have a look at this link.

59 years is not good news as many lenders would not lend with it being so short. Check the cost of extending the lease and negotiate the price down.

Richard_Webster

If it is share of freehold then there shouldn't be a problem in having the lease extended. Therefore the seller can organise it can't he? If he can't do that then that suggests that there is a problem. I would put it to the seller in that way.

Legally you can't make shared freeholders give you a free lease extension. Morally they should, but it has been known for them not to do so, so it is important to make sure you get it.

Some lenders will just accept 59 years but others won't - and I would use this as a bargaining counter - the lease must be extended for your mortgage lender.

caz1979_2

Thanks both.

Richard, when you say a free lease extension, I take this means not paying anything other than the legal fees involved?

princeofpounds

Yes. As you all have leases and you all own a bit of the freehold, it often makes sense to just extend leases on request.

Mortgage may be a problem. You will need to live there 2yrs before you automatically qualify to force and extension.

Richard_Webster

Richard, when you say a free lease extension, I take this means not paying anything other than the legal fees involved?

That's right.