buying a leasehold flat or not

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I'm a bit confused. Do you mean you want to purchase the lease now (i.e. buy the leasehold flat). Then in 2 years time you want to extend the length of the lease as there's only 57 years left? Or in 2 years time you want to purchase the freehold?

If you need a mortgage to buy the flat, you are likely to have trouble obtaining one of you'e only got 57 years left on the lease.

In answer to your question? "do i buy a flat with a 57 year lease" - I wouldn't unless the seller organises lease extension now otherwise it could be hassle central

cuthbert_the_octopus

You wont get a mortgage with a 57 year lease.

Personally I would get the current owner to extend the lease as part of the purchase and you can use the mortgage to get the additional funds.

Yes the price will be higher in 2 years time, as the flat will be worth even less.

However, the current owner maybe able to negiotate a lower price, when we extended a 58 year old lease, their original quote was £20k, but we negiotated it down to £10k, but of course you have to pay the freeholders legal costs. We offered to pay more ground rent, was £10pa, increased to £100pa.

However, this will all take time, and will delay your purchase, so it would be important that the vendor uses a solicitor who is familiar with lease extensions. The decision is yours, but you could get a £150k flat for £90k.

On the plus side, I doubt the vendor will be able to sell the flat without the lease extension, unless they are lucky enough to get a cash buyer......

In conclusion, no I wouldnt buy a flat with a 57year lease, I would include the lease extension as part of the purchase.

yvonnechilds

its a extension of the lease to my knowledge the vendor is the main lead in the flat he sublets to the 4 other flats to my knowledge if that makes sense to yous , So get the vendor to purchase the lease first is what your saying to do but when he increases the lease wont he bump up the price he isnt daft he knows the flat is worth more with a longer lease? also your advicing i shouldnt buy without a lease as it a money pit to get the lease after i have resided in it 2 years down the line? thanks again people:) how long did it tke to extend on cuthbert_the_octopus lease???

yvonnechilds

7 lenders will give on a 57 year lease as long as your pay the mortgage in 23 years and there is 25 years left over so a lender will lend on it.

Richard_Webster

So get the vendor to purchase the lease first is what your saying to do but when he increases the lease wont he bump up the price he isnt daft he knows the flat is worth more with a longer lease?

1. If you pay him a higher price then you can argue that the increase should only be the extra amount he pays to buy the extension. You don't have the trouble later on down the track and you will know now how much is involved.

2. If he is not prepared to do this because he doesn't want the hassle of getting involved with the landlord then you have the uncertainty of not knowing whether the reduced price now will compensate you for the increased cost and hassle later.

InkZ

Sounds like a lot of hassle, personally I would be looking at other flats.

Vincenzo

This does not sound right to me. The vendor should be looking to obtain market value less the cost of the lease extension which can be done during the legal process of purchase/sale. There must be something else going on here.

yvonnechilds

Thankyou for all your advice i will not be going ahead a lot of hassle . Found a nice freehold 3 bed house lot less trouble.:j:T