buying a leasehold flat or not

yvonnechilds

leasehold? do i buy a flat with a 57 year lease .. the vendor can buy it at the cost of 25 thousand now but he wont pay, so should i buy it in 2 years time is this wise please help i cant find a straight answer no wer stuck as what to do ?

yvonnechilds

bet i dont get a answer

CrackerJack

You will probably get more replies tomorrow.
It would probably help if you made your question clearer though.

I don't understand much about this, but isn't there a right to buy the lease now?
Maybe this is what you are referring to.

Presumably you can buy the flat and buy the lease?

What it will all boil down to is the price of the house and the price of the lease and 'is it worth it'.

Nobody can provide that answer without more details I do not think.

Presumably as the house come towards the end of the lease it will drop in value?

I am sure there will be more knowledgeable people on here tomorrow who can help.

yvonnechilds

:)Thank you jack, i want to buy a flat with a 57 year lease left on it to run if i buy it as it is now will i be able to increase it value in 2 years time when am entitled to buy the lease. you cant buy the lease untill you lived in it for 2 years the current seller of the property wont buy the lease for me i asked . the flat valud at £80.000, the seller as been tod by the company it going to be £25.000 for him to buy the lease now i did offer him £10.000 toward it but he dont have the money to buy so what my postion is 1 should i buy a flat with a 57 year lease 2 will i be charged thousands and thousand to buy the lease in 2 years time and 3 if i did buy the lease at a reasonable price would i add value .i know the flat next door to it is selling for £150.000 .:think::think:

CrackerJack

Well on the face of it you would have got a house worth 150 for 85+25 =110K a 40K profit.

However I doubt it is as simple as that.

How is the price for the lease set and will they let you have it for 25K? They may want more, I think you need to
find out for sure before you proceed.

As you seem to suspect there maybe some sort of hitch as it appears to be an instant profit of £40K for the buyer.
I suspect he may get it at a discount as he has lived there for some time already, however I am guessing.

Hopefully someone may be able to give you more help tomorrow.

It might be worth googling 'right to buy lease'.

This might help.

http://www.sholland.gov.uk/NR/rdonlyres/35C3CC59-6886-4854-8B3C-B329A25F877B/0/RTBleaseholdr13V5.pdf



You probably have the Right to Buy if you are a secure tenant. If you
were a secure tenant before 18 January 2005, you do not have the
Right to Buy until you have spent at least 2 years as a secure
tenant. If your tenancy started after 18 January 2005 you do not
have the Right to Buy until you have been a secure tenant for five
years.
You may also be entitled to a discount on the market value of your
home. The longer you have been a tenant the more discount you get,
up to a maximum limit of £24,000.
You may be able to exercise the right to buy jointly with members of
your family who have lived with you for the past twelve months, or
with someone who is a joint tenant with you.
You will only be able to purchase under the scheme if the property is
your only home.
You cannot buy the property if a court makes a possession order
that says that you must leave your home. If you are an undischarged
bankrupt, have a bankruptcy petition pending against you, or have
an arrangement with creditors and you still owe them money, you will
not be able to buy the property.
Certain properties may be excluded from right to buy for example:

So from that unfortunately it appears you will not have a right to buy for 5 years.
You need to read the rest of it too.

CrackerJack

Whatever the case you need to have the stuff checked by a professional, indeed I if you are borrowing the
money they will want that done too I expect, before they will lend.

Richard_Webster

Crackerjack has assumed that the Council own the freehold and that the Right to Buy applies. Where did he get that from?

OP hasn't said she is a Council tenant.

casper_g

CrackerJack wrote: »

This might help.

http://www.sholland.gov.uk/NR/rdonlyres/35C3CC59-6886-4854-8B3C-B329A25F877B/0/RTBleaseholdr13V5.pdf

I think that information is intended for council housing tenants who wish to buy their home under the "Right to Buy" initiative.

For information on the rights of leaseholders to apply for extensions to their leases, see here.

The best way to proceed is probably for the vendor to start the process of applying to extend the lease, then sell the lease once the process of getting the extension is underway. The right to get the lease extended is transferred to the buyer with the lease. See the info I've linked to above, under "Assignment of the Application".

If the vendor can't or won't do this for whatever reason, then proceed carefully, only after getting expert advice. It may be difficult to get a mortgage as different lenders have different requirements for how long must be left on the lease. I think some lenders will still consider lending on this, depending on the mortgage term you want -- e.g. first direct (and probably HSBC?) require that there are 25 years remaining on the lease at the end of the mortgage term, so might allow a 25 year mortgage on this as the lease has more than 50 years to run.

yvonnechilds

No this property is not a councill dwelling its private house with 5 flats a old victorian house the flat i want to purchase is the main lease holder sub letting to the 4 other flats so my question is if i buy the lease in 2 years time will i be charged more than there origanil quote of £25.000 . this is what the company wants now today of the person who is selling to me if i buy, he wont buy at this price. There 57 years left to run on the lease he wont buy the lease he wants to sell it without am i buying a flat thats going to be a money pit or will i buy a flat that i am going to add value when the lease is in place.. thanks people .

Richard_Webster

the main lease holder sub letting to the 4 other flats

Please explain further - are there long leases of these four flats and you are buying a superior (slightly longer) lease than theirs?

i buy the lease in 2 years time will i be charged more than there origanil quote of £25.000 .

Do you mean buy the freehold of the whole building or extend the lease?

Either way any figure given now is highly unlikely to be binding in 2 years time.

Get the seller to organise an extended lease now with eh freeholder so that he can use your money on completion to pay for it and pass it on to you. If he won't do that then you have to suspect that the seller thinks there will be a problem in getting the freeholder to do the deal when it comes to it.

Are you buying with a mortgage? if so there aren't many lenders who will be happy with this length of lease.

Cracker_Jack_2

Richard_Webster wrote: »

Crackerjack has assumed that the Council own the freehold and that the Right to Buy applies. Where did he get that from?

OP hasn't said she is a Council tenant.

She didn't say she wasn't that was the first thing which came up on google.