80 year lease

Chris.mcc240

I'm thinking of buying a roperty for cash. I can't get a mortgage as i have a terrible credit rating due to divorce.
Ive found the perfect flat and at a very good price and had an offer excepted. The agent tells me the lease is about 80 years and the leaseholder says the freehold can be brought with the purchasejust legal fees.. (its a purpose built block of six) from what the agent says a number of others have done this and are paying about £500 a year for insurance and maintenance. The block is clearly well run.
I'm worried about being able to resell I'm only doing this till my credit rating clears up a bit, I've been through 4 brokers who cant help😳
Its also seems a really good deal and to be honest I don't believe a word the agent says. I have enough experience to see there are no structural issues but I'm worried about this whole lease buying freehold business. What are the pitfalls and possible trap i might be walking into as a cash buyer ?

Harryp_24

If its a flat you can only buy a share of the freehold i assume, Which would mean clumping together with the other flats to buy the freehold or buying it out fully yourself.

Not too sure if im right here can anyone chime in?

I mean you cant buy a freehold for just your flat as it has at least one other persons flat on the land aswell... Unless you buy it outright and start chargin them, But then youre responsible for their maintenance and insurance.

Chris.mcc240

It comes with a lease and the option to buy the freehold. so not sure if a new management company has been set up. Would rather just extend the lease if it makes it easier to sell

nicholbb

Look at the land registry to see the amount other flats sold for and if they really are freehold.
Get a good surveyor (unless you are one), how's gas, electrics, water, heating.
Get a decent solicitor to do conveyancing (not your divorce one, if it left you with bad credit). They should be able to answer things like:
How much does renewing the leasehold cost? Once it's under 80 years it's going to be really expensive. What's the price for the freehold? How do the freeholders pay for maintenance.

As you seem to have spotted: If the estate agents mouth is moving the estate agent is lying, if it's not moving it's thinking of one to tell.