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leasehold house
aqueoushumour01
Posts: 1,687 Forumite
just found out the house we were all set on is leasehold with 999 years on lease from the 1970s.
updated on finding out there are service charges of £500 per year to pay. Would this put people off buying despite the length of the leasehold?
updated on finding out there are service charges of £500 per year to pay. Would this put people off buying despite the length of the leasehold?
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Comments
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Snap!
999yr leasehold is priced same as freehold, will cost you a bit more in legal fees (usually) but, other than that, it isn't usually onerous. Oh, and we pay £20pa ground rent.0 -
Do you really mean 999? I assume you mean 99!
It can be a potential problem getting a mortgage on a property with less than a certain length of lease - I'm just buying out my freehold because I couldn't remortgage with less than 70 years left.
Buying it is no problem for the current owner - they have a legal right to do so, so it should be part of your negotiations and the cost of purchasing it taken into account in whatever way you agree. You can arrange for the freehold to go through at the same time and make it a term of your contract to have freehold on composition and this should be fine.
The alternative would be to buy the property leasehold if you can find a mortgage lender that will do this, some will eg allow you to buy it if the lease is more than the mortgage term plus say 30 years.
I lived in a leasehold property for many years till I moved and am letting it now, it has been no problem except having to pay 25 per year ground rent. It's only a problem for mortgages.
Do bear in mind though two things - the shorter the time left on the lease the more expensive it is to buy, and secondly you have no legal right to buy the lease unless you have owned it for more than two years. That's not to say you can't buy it before but the freeholder doesn't have to sell it to you if s/he doesn't want to, until after that time.0 -
A lot of houses in many parts of the country are on 999 yr leases, mine expires in 2972 AD to be precise. Flat leaseholds are often shorter.docmaggiemay wrote: »Do you really mean 999? I assume you mean 99!
I don't think I'll bother with extending just yet but will be a very happy bunny if I'm still around with 70yrs to go.
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Do bear in mind though two things - the shorter the time left on the lease the more expensive it is to buy, and secondly you have no legal right to buy the lease unless you have owned it for more than two years.
This is wrong. The shorter the lease in theory the cheaper it is to buy because the buyer will then have to get the lease extended or buy the freehold.
OK, I know the poster meant "buy the freehold" but why do people keep talking about "buying the lease" when they have already bought it when they bought the property?RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
it's 999 years (around 960 to go). any concerns on reselling?0
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No, 999 year leases are fine. My mams is that from the 60's, maybe quite cheap to buy the freehold if your'e worried about it.0
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would anyone not want to buy a leasehold house or want it at a suitably lower price to buy?0
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Ohh, you are awful - but I like it! :kisses2:Doozergirl wrote: »You'll be just about grown up by then
Not unless they were immortal and reckoned they'd around in 900yrs when the lease needed renewing!would anyone not want to buy a leasehold house or want it at a suitably lower price to buy?
Within a mile radius of where I live I'd say about 30% (or more) of houses are leasehold, so no problem around here.0 -
Ohh, you are awful - but I like it! :kisses2:
Not unless they were immortal and reckoned they'd around in 900yrs when the lease needed renewing!
Within a mile radius of where I live I'd say about 30% (or more) of houses are leasehold, so no problem around here.
the only thing I have found is that the owners need to pay about £500 per year for service charges. That adds £5k to the price of the house over 10 years. Would that not put people off? Around here leasehold houses appear to be very rare (south east england).0
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