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Leasehold
Threebabes
Posts: 1,272 Forumite
We are selling our house with an approx 81 lease years left.
I have been in touch with the leasehold company and they will extend to 100 years for £480 but the yearly rent will go up from £35 to £250 a year.
As a buyer would you prefer the shorter lease with the £35 fee per year or the longer lease and the £250?
Thank You
I have been in touch with the leasehold company and they will extend to 100 years for £480 but the yearly rent will go up from £35 to £250 a year.
As a buyer would you prefer the shorter lease with the £35 fee per year or the longer lease and the £250?
Thank You
0
Comments
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At 80 years it starts to become more difficult (sometimes not possible) to get a mortgage on a leasehold property. That's quite cheap to extend the lease from my experience.
A short lease will put some people off and you may find if you don't extend they'll ask you to enquire about the costs or even start the extension since they won't automatically be able to extend unless the freeholder agrees for a couple of years, so they'll know about the ground rent increase anyway.0 -
When the rent goes up does it include provision for further increases?
If it were me, I would declare this to the buyer and let them decide what they want. On balance though, they'll probably need the lease extension over and above the ground rent cost which will probably be put up even further if they chose to wait till they had been in the property for two years.
Xx0 -
The first price offered by the freeholder is not always fair, remember that!
They can be negotiated and if there is still a dispute, set by an independent Leasehold Valuation Tribunal.0 -
Speaking for myself, if I was buying your property (irrespective of mortgage considerations) and I found you'd agreed an increase from £35 to £250 per year just before you sold I would be monumentally peeved.
Agree that the buyer should get to decide whether to go with this based on their requirements rather than you jumping the gun as you are about to vacate.0 -
Thank you everyone. Food for thought. :-)0
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can you buy the lease off them?0
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If you have owned for 2 years you can have your lease extended by 90 years to 171 years with £0 ground rent. That is your legal right if you wish to take it. It has to be done at a reasonable cost too. See this link for info and a calculator http://www.moneysavingexpert.com/mortgages/extend-your-lease0
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