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leasehold maisonettes in blocks of 6
want2bmortgage3
Posts: 1,966 Forumite
I can't work out how this all works.
There is a freeholder who grants 99 years leases on these maisonettes. There is no service charge, as there are no communal areas or gardens. Although there is a yearly ground rent (not a lot initially).
Each occupier has to arrange their own buildings insurance. How does that make sense with 6 people insuring the same building?
20 years later these leases are below 80 years. A problem for potential buyers, a depreciating asset for all living in this block. Freeholder will extend lease at a cost.
So the occupiers, as well as paying mortgages also have to make a contingency plan for extending the lease? Is there any argument to be had for never extending it?
I can't get my head around this concept? How is it better than renting for a start? It seems overly complicated too. Can anyone explain the purpose of this kind of arrangement? It appears to be feudalistic.
There is a freeholder who grants 99 years leases on these maisonettes. There is no service charge, as there are no communal areas or gardens. Although there is a yearly ground rent (not a lot initially).
Each occupier has to arrange their own buildings insurance. How does that make sense with 6 people insuring the same building?
20 years later these leases are below 80 years. A problem for potential buyers, a depreciating asset for all living in this block. Freeholder will extend lease at a cost.
So the occupiers, as well as paying mortgages also have to make a contingency plan for extending the lease? Is there any argument to be had for never extending it?
I can't get my head around this concept? How is it better than renting for a start? It seems overly complicated too. Can anyone explain the purpose of this kind of arrangement? It appears to be feudalistic.
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