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Short Leaseholds
SteveLAW58
Posts: 40 Forumite
Hello people,
Just after a bit of advice really regarding a property we're looking at. The asking price on the maisonette is #93950, we're happy enough with the maisonette itself its just the leasehold that we are unsure about.
The ground rent is only #10 a year, but the lease has 56 years left on it before it expires. Now in our experience (which is pretty small) its hard to sell a property with a short lease. Now one of the things that we must have in the property that we buy is a certain amount of ease in selling it on, as this is only going to be our first step on the ladder.
If we purchase this property will we struggle to sell it on in 4,5 years time?
To extend the lease however is 5000 for 100 years.
Advice would be much appreciated!
Just after a bit of advice really regarding a property we're looking at. The asking price on the maisonette is #93950, we're happy enough with the maisonette itself its just the leasehold that we are unsure about.
The ground rent is only #10 a year, but the lease has 56 years left on it before it expires. Now in our experience (which is pretty small) its hard to sell a property with a short lease. Now one of the things that we must have in the property that we buy is a certain amount of ease in selling it on, as this is only going to be our first step on the ladder.
If we purchase this property will we struggle to sell it on in 4,5 years time?
To extend the lease however is 5000 for 100 years.
Advice would be much appreciated!
0
Comments
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I do conveyancing for a medium sized law firm and in general when we have clients purchasing a leasehold with only 60 or less yrs on it, we ask the seller to extend the lease.
Mortgage companies get funny with Leases with less than 60 on sometimes and so in 5 years, you may have real problems if your new buyer has a fussy mortgage company. Depends on the lender though.0 -
You are going to struggle to get a mortgage on it in that case.SteveLAW58 wrote: »Hello people,
Just after a bit of advice really regarding a property we're looking at. The asking price on the maisonette is #93950, we're happy enough with the maisonette itself its just the leasehold that we are unsure about.
The ground rent is only #10 a year, but the lease has 56 years left on it before it expires. Now in our experience (which is pretty small) its hard to sell a property with a short lease. Now one of the things that we must have in the property that we buy is a certain amount of ease in selling it on, as this is only going to be our first step on the ladder.
If we purchase this property will we struggle to sell it on in 4,5 years time?
To extend the lease however is 5000 for 100 years.
Advice would be much appreciated!A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
Would you recommend either paying to extend the lease, or going in with a low offer?0
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You can't offer low enough for an un-mortgageable property. Extend the lease. Ask the seller to pay, if they say no go halves, etc etc0
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to have the right to extend the lease you need to have lived in the property for (I think) 2 years. The sellers need to extend it. If they can't afford to then there is some mechanism whereby you pay for them to extend the lease at the time of purchase. This is a standard legal procedure, the problem is that it can take 2+ months to sort out the paperwork so is a nightmare if you are involved in a chain. If you are prepared to wait then you should be able to get the property at a keen price.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Because of the lease term being so short I would consider £5000 to extend to 100yrs quite a good deal.
A flat with just 56yrs left on the lease isn't going to garner much interest & once it drops below 50yrs it will be considered unmortgageable by many lenders.
These are the people you need for impartial advice on issues involving leasehold property. It's a government funded agency. http://www.lease-advice.org/newintro.htmThe bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0
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