We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
First Time Buyer - Questions.
jdw88rm
Posts: 37 Forumite
Morning guys,
I'm 25 and looking to get myself on the property ladder ASAP. I've shopped around and found NatWest offer me the best mortgage and so have since been looking at properties.
Found a decent 1 bed flat that suits me down to the ground BUT only has 66 years left on the lease and this is putting me off. This charge is £80pa and service charge is £579pa and the asking price is £70k.
I was just wondering what you guys think to these details and what else I should be looking out for?
Many thanks!
Jon
I'm 25 and looking to get myself on the property ladder ASAP. I've shopped around and found NatWest offer me the best mortgage and so have since been looking at properties.
Found a decent 1 bed flat that suits me down to the ground BUT only has 66 years left on the lease and this is putting me off. This charge is £80pa and service charge is £579pa and the asking price is £70k.
I was just wondering what you guys think to these details and what else I should be looking out for?
Many thanks!
Jon
0
Comments
-
Speak to Natwest and see what the minimum remaining lease term on completion is.
Consider that the flat may well have restricted resale value once mortgage finishes and will me unmortgageable pretty much due to short lease.
See if lease can be extended andhow much it will cost.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
With a 66 year lease, you would struggle to sell as has been mention
https://www.nationwide-intermediary.co.uk/lendingcriteria/property_and_construction/minimum_leasehold_termsMinimum Leasehold Terms
England and Wales
Flats and Houses - a minimum unexpired lease of 55 years is required at application with a minimum unexpired lease term of 30 years after mortgage term ends.
Where a new longer lease or lease extension is to be purchased the application will be processed using the details of the new/extended lease.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
-
Natwest only lends on a property that has at least 30 years left on the lease term AFTER the mortgage term has ended.
Do you guys think its worth extending the lease term sooner rather than later if I were to buy it?
Cheers0 -
It's up to you. The longer you leave it the more expensive it could get.
You are buying a flat which you may struggle to sell in the future as it stands. I would suggest you don't proceed until you know how much extending the lease will be.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Ok. Sorry for the silly questions, this is all very alien to me
Who would I contact to find out about extending the lease term?0 -
I think it should be the freeholder, as it is generally them that grant the lease.Thinking critically since 1996....0
-
The trouble is where would you get the money from to do this?Do you guys think its worth extending the lease term sooner rather than later if I were to buy it?
I don't know if you would be able to get a mortgage based on the value after the lease extension to pay for the lease extension.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.8K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.4K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards