Leasehold flats in inner London

jb2012

Hi, does anyone have advice on buying a leasehold flat in inner London? I've been advised not to buy a flat with a leasehold of fewer than 100 years due to the devaluation that comes with shrinking lease periods. However, many flats seem to have leases of 70 or 80 years and I wondered how much this will affect value over the next few years and what my rights are to getting a lease extension, and how difficult/expensive this is? I'm a first-time buyer looking at 1 bed flats around 200k in value, and plan to live there for perhaps 2/3 years.

Thanks very much

katejo

jb2012 wrote: »

Hi, does anyone have advice on buying a leasehold flat in inner London? I've been advised not to buy a flat with a leasehold of fewer than 100 years due to the devaluation that comes with shrinking lease periods. However, many flats seem to have leases of 70 or 80 years and I wondered how much this will affect value over the next few years and what my rights are to getting a lease extension, and how difficult/expensive this is? I'm a first-time buyer looking at 1 bed flats around 200k in value, and plan to live there for perhaps 2/3 years.

Thanks very much

100 is a bit high. Many new leases on flats in London are for 99 years. Mine was when I bought it. However it is risky to buy one with with under 80 years (or close to that) because it becomes more expensive to extend the lease once it drops below 80. I sold mine when it had 87 years which is reasonable. It gave my buyer a few years to get used to being a homeowner and to adjust to aditional expenses. I would not consider any property under 80 years.

jb2012

Thanks. But why does 80 make a difference and would I be entitled to extend the lease or would the freeholder have to agree?