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Leasehold with a share of freehold
jacko89
Posts: 3 Newbie
Myself and my girlfriend are considering purchasing a flat which is leasehold with a share of freehold. We currently rent the flat and the owner is willing to sell. We have agreed an asking price.
There is currently 68 years left on the lease and the freehold is shared among the flat owners in the building. A share of the freehold would be included with the flat.
I have some concerns due to the relatively short length of the lease and also in relation to how much it may cost to extend.
I understand that a lease below 70 years may affect the saleability of the flat and I am currently trying to get some feedback in terms of the freeholders plans to extend the lease and when this may happen. Is it problematic to extend the lease if the freehold is owned by the flat owners or should this make the process easier?
It would be useful to get some advice in terms of whether we should go ahead with the purchase with the lease this low or whether, as part of the sale agreement, we insist the lease is increased prior to buying.
The other flats in the building are let to tenants by the owners apart from one who is an owner occupier.
The current 'chairman' of the freehold company owns two flats which he lets out.
I also understand that we have to own the flat for two years before we can extend the lease if we do go ahead with the purchase. At this point the lease would be down to 66 years
This is a concern if the current owners are not willing to extend the lease asap (or prior to purchase).
Could the freeholders extend the lease within the two year period without including us? Could this then incur extra costs?
Any information would be very useful as we are first time buyers and the possibilities/legal aspect can be quite overwhelming!
There is currently 68 years left on the lease and the freehold is shared among the flat owners in the building. A share of the freehold would be included with the flat.
I have some concerns due to the relatively short length of the lease and also in relation to how much it may cost to extend.
I understand that a lease below 70 years may affect the saleability of the flat and I am currently trying to get some feedback in terms of the freeholders plans to extend the lease and when this may happen. Is it problematic to extend the lease if the freehold is owned by the flat owners or should this make the process easier?
It would be useful to get some advice in terms of whether we should go ahead with the purchase with the lease this low or whether, as part of the sale agreement, we insist the lease is increased prior to buying.
The other flats in the building are let to tenants by the owners apart from one who is an owner occupier.
The current 'chairman' of the freehold company owns two flats which he lets out.
I also understand that we have to own the flat for two years before we can extend the lease if we do go ahead with the purchase. At this point the lease would be down to 66 years
This is a concern if the current owners are not willing to extend the lease asap (or prior to purchase).
Could the freeholders extend the lease within the two year period without including us? Could this then incur extra costs?
Any information would be very useful as we are first time buyers and the possibilities/legal aspect can be quite overwhelming!
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Thanks for info - does anyone have any further advice?0
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