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Repossesed Want to buy Flat for Sale but only <80 years left on lease
MrHelpful
Posts: 172 Forumite
Hello - need some advice. I am looking to make an investment property purchase and have stumbled upon a repossesed flat for sale - its in a pretty good location for young professionals/students - I have been round for a viewing and its a nice flat however the EA is having trouble getting hold of the management company and cannot confirm the ground rent, service charges etc. Also there is only 77 years left on the lease... have done some background read is it right you have to own the property for more then 2 years to extend the lease and as its less the 80 years - I am looking at about 8k in costs. Also I dont think I can get a mortgage with all these unknowns therefore would likely be a 100% cash purchase. Potential rental yield is coming in at 8%
The EA has said the indemnity insurance would be included for any suprises but I am slightly confused as to what suprises this may be.
Your thoughts
The EA has said the indemnity insurance would be included for any suprises but I am slightly confused as to what suprises this may be.
Your thoughts
0
Comments
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Sounds like it could be difficult. You would have the right to purchase a new lease at the market rate. (a bit like buying it all over again). The lease being the rigts to the property for the next 99 years or so from the freeholder. Who is the freeholder and what would they charge for a new lease?
Too many unknowns in my view.
G0 -
When you say market rate? What do you mean - I took this as being about 8k? I don't know who the freeholder is what they would charge for a new lease0
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