Mortgage on leasehold property

spirit

Hi, I'm looking at a house tomorrow that is on a 98 year lease. well, it's not strictly speaking a house. The agents call it a coach house. It's a 3 bed place which is built over 4 garages. one of the garages belongs to the property and there is a downstairs front door with access to the garage and a utility room behind it. all the main rooms are upstairs.

It was built last year on a 99 year lease hence the remaining 98 year bit. Is it more difficult to get a mortgage on such properties? to get a comparable sized property on the same development would cost around £220k and i had a mail from the agent today advising of a reduction in price down to £184,950. I think it was on at £190 ish before, so they obviously have a problem with resales on leaseholds. There is also the question of the lease. If I pop my clogs in say 30 years time leaving a 68 year lease, my kids (the beneficiaries of my will) could have an even bigger problem selling it?

EdInvestor

spirit wrote:

It was built last year on a 99 year lease hence the remaining 98 year bit. Is it more difficult to get a mortgage on such properties?

No, assuming the lease is properly drawn up.

I think it was on at £190 ish before, so they obviously have a problem with resales on leaseholds.

There is no reason to assume the price reduction is related to the leasehold.

If I pop my clogs in say 30 years time leaving a 68 year lease, my kids (the beneficiaries of my will) could have an even bigger problem selling it?

Leaseholders have a right to extend the lease after they have occupied the property for a couple of years is they want to.It's not a problem until the lease period falls to around 75-80 years.

herbiesjp

Are these in the Avon neck of the woods?

There should be no problems with these

spirit

herbiesjp wrote:

Are these in the Avon neck of the woods?

No, Basingstoke neck of the woods (although you might struggle to find some woods!)

AndrewSmith

spirit wrote:

herbiesjp wrote:

Are these in the Avon neck of the woods?

No, Basingstoke neck of the woods (although you might struggle to find some woods!)

Just arranged a buy to let mortgage on one of these for a client. Went through no problem at all.

He originally thought it was a 'flying freehold' which did cause a few minor hiccups however once it was established as leashold there were no further major issues.

Hope this helps

Andy

spirit

that's interesting Andrew - was it at the Beggarwood development?

AndrewSmith

spirit wrote:

that's interesting Andrew - was it at the Beggarwood development?

No, but a similarly designed development for a local client buying in Bristol.

Andy