Purchasing a leasehold property

Cardinal-Red

Hi,

My partner and I have been completely taken by a new set of flats. The vendor's agent has told us that a 199 year lease will be created on exchange of contracts.

My question is, what happens after the 199 years expire? I know it's way past my lifetime, but we've seen others saying 99 years etc and I don't like the idea of paying all that money and then in 99 years time my heirs hand it back etc etc.

Thanks!

Fairygold

The value of your lease will diminish as the lease geets shorter, therefore when there are not many years left to run, the leaseholder will often find it difficult to sell. Once the lease expires the flat will revert to the landlord. Leaseholders can either renew (extend) their lease, or alternatively, they may wish to purchase the freehold.

You can obtain FREE a booklet (140 A4 size pages) Residential Long Leaseholders A guide to your rights and responsibilities from the office of the Deputy Prime Minister by phoning 0870 1226 236. This tells you all you need to know about taking on a leasehold.

Norma_Desmond

I would also suggest that you had a good look at the lease BEFORE the exchange of contracts, otherwise how will you know what to expect in terms of service charges etc.? I used to own a leasehold flat, and, without wanting to put you off, found that the whole service charge/major works issue was financially crippling and that my freeholder was verging on the criminal. I won't bore you with the details, but I certainly wouldn't buy leasehold again - it's an archaic, rip-off form of tenure.....

Cardinal-Red

You may be right but freehold is not available for the kind of property we are after.

Thanks for the warning though!