85 year lease on flat - too short?

balsingh

Can't remember the guideline for how many years lease a flat should have to easily get a mortgage. Seen a place with 85 years and wondering if thats adequate. Will be needing a 25 year mortgage!!

Joe_Bloggs

It may be easier to have the vendors enquire about negotiating and negotiate a longer lease for you. This is a right if they have been in the property for more than two years and a favour if less. Once the lease is less than 80 years then all sorts of daft financial terms and the prospect of legal tribunals come into play. You get to pay both sides legal costs just to make things fair. Watch out for terms like marriage costs and peppercorn.
Some advice from Shelter here.
J_B.

theGrinch

sub 75 years, in cases I have seen

balsingh

The flat is being offered at a price a lot below market value. As a result, is there anyway I can find out how much a lease extention is likely to be in a couple of years if I do go for it? That way, I can pencil it in based on the price etc etc.

Supernova

J_B is right - at 80 years Marriage Value comes into play and extension starts to cost more - loads of threads about this in this forum.

cattie

As someone who has owned leasehold properties in the past, I'd say 85yrs is more than adequate. I'd have no hesitation of buying such a property.

If it were possible to get the vendors to negotiate a lease extension before the sale that would be great, but as these things take time it probably isn't very feasable.

Once you've owned the property for 2yrs you have the right to purchase a lease extension from the freeholder. You can apply before you've owned the property for 2yrs, but the freeholder doesn't have to agree.

The best place for info on owning a leasehold property is here http://www.lease-advice.org/newintro.htm

As far as a mortgage goes you'll have absolutely no problem with a lease of that length.

balsingh

If I buy the flat, after 2 years when I want to renew the lease, is the freeholder obliged to do that or can they say no.

cattie

After 2yrs you have the right to a lease extension & the freeholder has to agree. If an acceptable price cannot be agreed then it can be determined by tribunal.

Have a look at the website link I gave earlier as it may give more info there. Or give them a ring, they are a government funded body & should be able to answer any queries.