22 year lease on a rental property?

Abstaaarrrr

Morning.
Was just wondering if anyone could give me more insight into this subject. Me and my partner have just stumbled across a property online through a well known estate agents. The property comes with a 22 year lease, you have to go through solicitors etc to be able to gain the lease. But what does having the lease intail? Does it mean that we can do anything to the property (decoration wise?) It's it just another way of having a long term tenancy agreement? Can the landlord still sell the property? Anyone have any ideas on what kind of cost the solicitors fees are going to be? Do we have to pay for any repairs?
Sorry for all the questions but I can't find much online, the search results are more for if your buying a property. Any advice is welcome
Thanks

G_M

Are you sure it's a 'rental'?

Is there a purchase price quoted? I suspect it is like any other long lease (usually 99 years) which you can buy (subject to annual ground rent/service charges) but is just a short lease which would be unmorgagable.

Alternativeley it might be a rental, with a monthly, quarterly or annual rent. You would have securty for the period of the lease, but would also be locked in for that period. Unless the temrs also provided for early surrender (a Break Clause).

Any lease over 3 years must be Executed as a Deed - hence the solicitors.

silvercar

First thing is that no one will grant you a mortgage on a 22 yr lease.

You would need to read the lease to see the repairing obligations. If it is a flat there may well also be maintenance charges etc

There may well be an opportunity to buy a lease extension, but it would be costly.

Re-sale opportunities may be limited.

That said, a property heavily discounted for a short lease may yield a high return as a rental property.

Worth trying to find out if other properties in the block have extended their lease or if they are all on short leases. I would be wary of a block falling into disrepair if all were on short leases.

booksurr

crucially the exact cut-off point is 21 years, although I too would question why you call it a "rental" property (assuming it is a residential property not a commercial one)

anything over 21 years long at the point it was originally granted is called a "long lease" and confers certain rights on the leaseholder (including the ability to ask to extend the lease)

its terms and conditions regarding repairing responsibility and decorations etc etc are whatever is written in the lease document

http://www.beingaleaseholder.co.uk/residential-lease/long-residential-lease

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/9432/leaflet.pdf

Abstaaarrrr

I'm assuming it's a rental as it's under the lettings department of the estate agent.
This is what the advert states...
"We are acting on behalf of our client who are offering long term leases on this property, criteria prospective parties should be aware of:

22 year lease (with three month notice option available) internal repairing responsibility for the property.

Successful applicants need to appoint a solicitor to assist with preparation of the lease agreement at their own separate cost, this can take 3-6 months to complete.

Accomodation comprises,downstairs bathroom, two receptions,kitchen, two double bedrooms and one single bedroom, Externally are gardens and parking.

Semi-Detached Cottage

Three Bedrooms

Two Receptions

Kitchen

Bathroom

Gardens & Parking"
... That is all the information they give on the website. So does that also mean you wouldn't need a deposit as no deposit amount is stated? I have just noticed it states we have to pay for any repairs, which is fine.

Pixie5740

This one?

http://www.rightmove.co.uk/property-to-rent/property-43913832.html

Abstaaarrrr

Pixie5740 not that property. But it's advertised by that estate agent. I can't post any link yet as I'm a new user but it's a 3 bed on forstal road. It's only advertised on estate agents website

hazyjo

Just drop the www. Then you can add a link


Jx

Pixie5740

Second time lucky...

http://www.ashtonburkinshaw.co.uk/rent/property/3-bedroom-cottage-house-in-maidstone,me14-ref-4071506/

AdrianC

Abstaaarrrr wrote: »

Pixie5740 not that property. But it's advertised by that estate agent. I can't post any link yet as I'm a new user but it's a 3 bed on forstal road. It's only advertised on estate agents website

This one?
http://www.ashtonburkinshaw.co.uk/rent/property/3-bedroom-cottage-house-in-maidstone,me14-ref-4071506/

Looks like a deeply odd setup to me. I can't see any benefit for anybody, tbh.

Cakeguts

National Trust property?