Help regarding Leasehold property

flossy_h

Just need some advice please....

I am a FTB and I viewed a property and made an offer. Firstly was told by EA that is was freehold. Its not a flat but a coach house about 3 years old.
Offer was accepted and mortgage application done, solictor instructed. Now we have the survey back it says the property is Leasehold and only has a 70 year lease left.

I think that its such a short period for a new property. Would I have trouble re selling the property again in say 5 years time?

I am worried as I have parted with a lot of cash already for survey and solicitors and mortgage application fee, I dont want to pull out but something is telling me I wasnt told the correct information at the begginging for this reason.

Thanks.

vodkagirl001

You wont have trouble selling it in 5 years time no - Anything with less than 30 years you may have trouble selling on - so you have 30-40 years to sell it on!

Our new build has a 125 year lease just for your information, and I think alot do but perhaps with it not being an apt complex they opted for a lesser lease due to cost or something?

EdInvestor

Below 70 years, extending the lease can get quite expensive. You are entitled to extend after you have been living there for 2 years. But how much would it cost? That's the next question.

The existing vendor can serve enotice on the freeholder that they want to buy, and you can then do the buying. Some (or all) of the cost might be cut off the purchase price.

But if other buyers are willing to go ahead on the existing lease at the existing price, you could lose out...