Buying a flat with 92 year lease....

sinbad182

Hey guys, new user here. Hope you are all well and apologies if i've repeated a popular query - couldnt see anything similar on first two pages.

Im a FTB who has found a flat I like, and am ready to make an offer for. Was originally led to believe it had '95+' years on the lease, but have just found out it has in fact got 92 years.

This has worried me slightly, as I was going to live in whatever property I buy for a good few years, and then hopefully sell it with 90-something years left on the lease. If this place only has 92 years now, that would mean when I come to move it's lease will be in the 80's.

Is this in issue? Will it be significantly harder to sell and less appealing to potential buyers with a sub 90 year lease? Should I still move on a property like this? I know the marriage value doesnt become an issue until 80 years are left, but I worry that seeing a lease length that begins with an 8 might scare off future buyers.

Any opinions/advice on this would be hugely appreciated! As added info, the flat is on the market for 220,000, and I was going to go in with an offer in the low 200's.

Brallaqueen

I've done the same, knowing that if I intend to be there in 10 years time I'll need to look at the lease sometime after living there for 2 years. I believe that they only get iffy at the 80 yr stage, and sub 80 you will have problems

sinbad182

Yeah I shouldn't have any problems extending it when it dips below 90, it's more the fact I would rather have sold it with 90 plus years, and not have to pay to extend to make it more saleable.

Does anyone know how much a propertys attractiveness and value would drop with a lease in the 80s compared to in the 90s?

Bananamana

sinbad182 wrote: »

Hey guys, new user here. Hope you are all well and apologies if i've repeated a popular query - couldnt see anything similar on first two pages.

Im a FTB who has found a flat I like, and am ready to make an offer for. Was originally led to believe it had '95+' years on the lease, but have just found out it has in fact got 92 years.

This has worried me slightly, as I was going to live in whatever property I buy for a good few years, and then hopefully sell it with 90-something years left on the lease. If this place only has 92 years now, that would mean when I come to move it's lease will be in the 80's.

Is this in issue? Will it be significantly harder to sell and less appealing to potential buyers with a sub 90 year lease? Should I still move on a property like this? I know the marriage value doesnt become an issue until 80 years are left, but I worry that seeing a lease length that begins with an 8 might scare off future buyers.

Any opinions/advice on this would be hugely appreciated! As added info, the flat is on the market for 220,000, and I was going to go in with an offer in the low 200's.

most lenders want length of mortgage + 30 years or so.

60-70 remaining is usually acceptable.

Euphoria1z

what happens when the lease runs out? i dont really understand this lease business. im in scotland and have a flat freehold, im now moving to england and have found out its all leasehold? does that mean even tho youve bought the flat and own it, you can get thrown off due to the lease running out? what if it doesnt get extended?

Bananamana

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

you would generally get it extended before it runs out.

you own the flat not the land under it :P

<sebb>

92 years isn't a great problem. A lot of new leases are created for a term of 99 years. Sub 80 as you have identified, is where it becomes a problem. However, I like you would prefer the comfort of a longer lease. At 92 years it shouldn't cost the earth to extend, so perhaps as part of your offer you could stipulate that the vendor extends the lease.

sinbad182

Yeah, I was thinking of that Sebb. Coluld be an idea!

The place is pretty much what Im looking for, 92 years is still a decent length in the grand scheme of things, so I may just make a lower offer than I was going to when he told me it was 95+ on the lease, citing the need to extend the lease in the near future.

Worth a shot I reckon.

Im thinking it will cost me circa 10-12 grand to extend, if no major complications. Does that seem reasonable?