freehold vs leasehold

TCPPC

no service charge, im asking the seller on the terms if they can increase it by 2% each year by the time my mortgage is finish its quite a large lump sum

Richard_Webster

A leasehold house with 100 year lease is a bad investment as the property will lose value relative to a similar freehold one as the years go on. Sadly some builders have built developments with 99 year leases and buyers have not resisted and insisted on the freehold to start with and have been caught years down the track having to pay for lease extensions/purchase of freehold. Builders who do this should be ashamed of themselves. They may well still be doing it in some parts of the country and should be exposed for scamming innocent house buyers.

Also is it 100 years left on the lease or was it originally 100 years some years ago?

Some major lenders won't lend on anything less than 70 years and anyone with their head screwed on will not pay full price for a property in the 70s of years even though it may be mortgageable because they will be concerned that they will have to pay to extend the lease or buy the freehold when they want to sell a few years later.

TCPPC

Hi Richard

its a 250 year lease, i agree anything like 99 yr i would walk away without thinking.

kizkiz

My maisonette has 950ish year lease and £10 a year ground rent.
No service charges.
Sometimes it isn't all bad

chris_aaaaa

You need to check that the ground rent does not multiply every few years too.


In general LH is a bad idea.