Buying flat, mislead on length remaining on lease

Richard_Webster

if they genuinely thought the lease was 109, that's what they must have based the price on.

Likelihood is the estate agents didn't even think/ask about lease length but just valued it according to its accommodation, condition and facilities.

bristol_pilot

Whether the lease is 70 years or 110 years, that is a short lease and significantly reduces the value of the flat IMO (relative to if the lease were, say, 999 years). Personally, I'd walk.

propertyman

Richard_Webster wrote: »

Likelihood is the estate agents didn't even think/ask about lease length but just valued it according to its accommodation, condition and facilities.

And what is implicit in that, is a lease length which would not affect the value derived from the assumptions above.

katejo

propertyman wrote: »

And what is implicit in that, is a lease length which would not affect the value derived from the assumptions above.

As a previous owner of a leasehold flat, I think that ALL adverts for such properties should be required to show the number of years left on the lease. Potential buyers who are attracted to slightly cheaper properties shuld be able to see whether this is because of a shorter lease or whether the flat simply needs refurbishment/redecorating.
When I sold my flat, a buyer said I was asking too much because another similarly priced property viewed had been more recently decorated. However I later learnt that my flat had had more years left on the lease. As a buyer, a longer lease would be more important to me.

katejo

bristol_pilot wrote: »

Whether the lease is 70 years or 110 years, that is a short lease and significantly reduces the value of the flat IMO (relative to if the lease were, say, 999 years). Personally, I'd walk.

Except that in London this would be pretty unlikely. When I bought my old flat, it had a new lease of 99 years which seems pretty standard. I sold it when it had 87 years left which was enough to not really affect the price. I then went for freehold, much more preferable but very difficult for a first time buyer.

PJD

It's going to cost the best part of £10,000 to renew that lease is it not? And I dont think it's a quick process?

What's the latest? Is the seller going to renew?

Ulfar

Vendor is taking the !!!! on this one, you may get the lease length wrong by up to ten years but not 69. They will have been more than aware of the lease length being 40 years.

They have no hope of selling this flat to anyone requiring a mortgage, time to negotiate hard.

HRV

My old flat only ever had something like 110 yrs on the lease- when i got it i wasnt properly informed by solicitor that it was borderline at 75 yrs- I had to extend my lease before selling- it cost 10 000 all in icluding fees- 7500 for extension + all the costs. Was not a quick process as I had to negotiate the terms as they were offering me less than ideal terms for more money (saved 1000+ and paid the negotiator about 300 (fee only payable if he made me a saving)- so worth the money) then had to do all the paper work- think about 4 months in all.


I put it on the market twice- on no occassion was i asked to prove the length of the lease!

I also had a issue with a house i was purchasing- did surveys etc and solicitors- even had a date to move- then my solicitor asked if they had the money in place to pay the local authority- as it was ex council and theyd owned it less than 5 yrs- they hadnt realised- withdrew it from market- No house for me- just bills- sadly i think thats just the way it is :-(

Ulfar

Only 75 years on a lease is bad as you have broken the 80 years barrier where the costs escalate exponentially. 40 years is diabolical, I can see the OP having to walk away from this one.

katejo

How long were they required to keep their ex council house before selling it? I know there is a restriction but don't know the details.

re. leasehold flats: I would never buy one of these or even make an offer without knowing how many years were left on the lease. It would have to be min 85-90 for me to buy one. I would also want to research the freeholder and find out additional info from other residents. Mine was either a crook or simply incompetent.