Length of lease?

HB58

We have just put our house on the market. The plan is, if everything works out as we hope, to move to a flat.

What is the minimum lease that we should, realistically, consider? Of course 999 years would be great but it's not always on offer! I'm 58 now and hubby is 66, we're thinking this will be our last move (other than nursing home or feet first!) and our son will have the job of selling when the time comes.

Does share of freehold change things? For better or worse?

Of course, we first have to sell this one and then find somewhere for us that will allow our cats, so we could well still be here for a good while yet!

booksurr

if there is less than 80 years left to run on a lease it becomes more difficult (but not impossible) to get a mortgage on it in which case your buyer would almost certainly make it a condition of the sale that you (they have no right to do it themselves) pay to extend the lease. Since it appears you will be the buyer you should expect to insist on a lease extension if applicable - what impact that has on your final agreed purchase price is then down to how well you negotiate with your vendor...

lease extensions are for a further 90 years. The lease-advice.org is an independent advice centre which should be your first port of call for all things to do with leasing http://www.lease-advice.org/about-us/

lease extensions explanation: http://www.lease-advice.org/advice-guide/lease-extension-getting-started/

it is impossible to answer your actual question since leases can be of any length depending on how old the building is. As a sweeping generalisation the newer the building is the more likely it will be that the original lease was for only 99 years. 999 year leases are the stuff of dreams nowadays

Irratus_Rusticus

HB58 wrote: »

What is the minimum lease that we should, realistically, consider? Of course 999 years would be great but it's not always on offer! I'm 58 now and hubby is 66, we're thinking this will be our last move (other than nursing home or feet first!) and our son will have the job of selling when the time comes.

Does share of freehold change things? For better or worse?

Hi, never say die!

A short lease is anything under 80 years because the relative value of lease to freehold goes down. Google graphs of relativity and be amazed! Under 80 years something called marriage value comes into play so you might have to divorce...no I'm kidding.

A shorter lease might be a bargain as a buyer as long as you can get a mortgage if needed. Any lease over 65 years left ought to be mortgageable.

But please look at the lease itself. Carefully. Very very carefully. check the ground rent and how often it doubles. Old ones go up maybe every 33 years on a 99 year lease, the onerous ones can cost you a kidney pretty quickly. Check what you have to pay out for or cannot do. Check the "Freehold" definition to see what your share of the service charge is for and what your share is.

Check out the managing agent. Search the LVT court cases - no really - to see how often the freeholder or agent shows up for pursuing leaseholders for a whole range of legal bear traps like changing that boiler flue position or fitting new windows without consent.

As for shared freehold, all depends. Can be a nightmare to get decisions made to do communal works. Can be paradise.

If you can afford it why not buy a nice modest freehold terrace and avoid the hell that is leasehold these days.

rats, took too long to write my "first" reply. Duplication.

eddddy

HB58 wrote: »

What is the minimum lease that we should, realistically, consider?

Almost all leases can be extended - at a cost. (The law gives you the right to extend the lease.)

So you just need to factor in the cost of any lease extension, when looking at prices and making offers.

HB58 wrote: »

Does share of freehold change things? For better or worse?

Could be either.

If the leaseholders jointly own the freehold, they can jointly decide how to manage the property - which is usually better.

But if the other leaseholders are indifferent, stupid and/or have different opinions on property maintenance from you - it could be worse.

hazyjo

Just a word re pets. Never believe the EA or what people tell you other residents have. You should make sure the lease says cats or whatever are permitted (through yr solicitor).

Jx

HB58

Thanks for all your input.

We won't need a mortgage, although the flat + move won't leave us with much/anything left over. So we can't do any serious looking until we have a solid offer for this one.

The one viewer we have had (only went on the market 3 days ago) said that the price would have to come down a lot 'because it needs a lot of updating'.(We have a modern kitchen and shower room although I accept that not everyone will share our taste in decor). I see that the person has booked a second viewing . . .

If it weren't for the cats, I would have preferred a top floor flat - partly because of noise, partly for increased security - but I can't imagine a time when I would want to be without them. I know having them will make things much more difficult, we viewed a flat in a block with lovely gardens and owners' swimming pool but no pets allowed

Having been in this place for 28 years, the very thought of moving is daunting, but it is the right thing for us. I expect I will be here with more questions before anything is settled!