Leasehold flat - Victorian - Help

kitkat_

I am progressing with a purchase of a lovely 1 bed flat in a great location for 130k which is likey to be worth at least 140k when / if the market picks up again and I have extended the lease (currently 72 yrs remaining and it is £8k to extend the lease). It is a Victorian conversion and there are a few up for sale / just sold in the same block which are much smaller and therefore cheaper. The vendors are keen to sell quickly.

My concern is...

1. Should I have a Homebuyers or full structural survery to see if there are issues with the boiler / roof / building?
2. How much is the lease likely to increase after a few years?
3. Can I remortgage the flat if the lease is under 70yrs?

Please help!

Richard_Webster

1. You should have a survey but remember the surveyor won't be able to look at all the other parts of the building that are not accessible from the flat you are buying so his comments on the building as a whole will be bound to be a bit limited.

2. Make the seller organise an lease extension now and if necessary pay more for the flat. He will have a job selling it to anyone else so push him. You can't be sure the landlord will not try to screw you for a lot more money in the future . Remember you won't be entitled to an extension until you have owned it for 2 yaers.

3. Some lenders will lend on 60-70 yaer leases but several major ones will not do so.

ILW

If it is a Victorian conversion, check out the soundproofing. Some are terrible.

kitkat_

Thank you - trouble is I can't get any more on my mortgage to cover the lease however I have got the flat at a MUCH reduced price so have a much larger flat than what I could afford otherwise.. hopefully I'll get a bonus or something to cover it before I sell in a few years!

I'll get the survey and check soundproofing...

Jowo_2

What if the freeholder turns around in a few years time and says the extension will cost 15k?

Disputes have to go through a tribunal and I assume they can be costly because of the cost of the surveyor to perform the valuation.

In a slow market, a buyers market, I would expect the vendor to pay for this now, or to discount the price further. They should be aware that while it may not cause an issue with the purchase, it does deter a lot of buyers who are very twitchy about these matters, particularly for leases under 80 years. When my friend was selling her flat that had around 76 years left, the estate agent said "This shouldn't be an issue but we do find it is a factor..."

PS - her flat was a Victorian conversion and the sound proofing was appalling - we could hear the male neighbour upstairs having a wee, every footstep, knew if they were listening to music or the TV and could hear the lady scold her children (every word clearly).