999 year lease

bouicca21

Nationwide criteria specifically says unreasonable doubling, as in doubling ever 5, 10 or 15 years.

At some point it will become cost effective for the leaseholder to get a statutory extension to remove the ground rent.

kingstreet

It's a flat, so it ain't ever going to be freehold.

The lease ain't 125 or 150 years, so if you live to 150, you don't have to worry about an extension as there will still be 700+ years left.

Nationwide is talking about NEWBUILDS only, so this is unaffected.

I wouldn't have a problem with this. In fact I'd be happier with this than I would with an 80 year remaining lease.

noddynoo

After 2 years you can serve notice for a statutory lease extension and because the current lease is so long it won;t be that expensive to do as it won;t increase the value significantly and the ground rent will be scrapped

eddddy

bouicca21 wrote: »

At some point it will become cost effective for the leaseholder to get a statutory extension to remove the ground rent.

noddynoo wrote: »

After 2 years you can serve notice for a statutory lease extension and because the current lease is so long it won;t be that expensive to do as it won;t increase the value significantly and the ground rent will be scrapped

That's kind of misleading.

When you get a lease extension, the ground rent reduces to zero - so the leaseholder has to compensate the freeholder for their lost ground rent.

(It's a bit like paying all your ground rent in advance as a lump sum - but you get a discount.)

If the ground rent is high, the compensation is high.

e.g. To take a simple example, you would have to pay 5 times the compensation for a £500 ground rent, compared to a £100 ground rent.


(That's one important reason why leaseholders should be very wary about accepting informal lease extensions with high ground rents.)

zagubov

Nobody here would be daft enough to buy a perpetual timeshare whose fees could erode your estate you pass on to your loved ones (and their loved ones ad infinitum).

This is a similar situation- not quite as bad, but a trap for your descendants nonetheless.

Just don't do it.

JOHANNET

i am interested in buying a property as it has a very long lease 990 years and a possibility of buying a share in the freehold. I have since found out that the ground rent rises by 50% every 25 years, which at first doesn't seem very much but after a approximately 250 years the ground rent will have risen to approx 1278 and after 300 years £2875, 6468 by 350 years etc. So what seems a small amount at first will grow astronomically because the lease is so long. Just to clarify - in case I have got my sums wrong - it starts at £50 then after 25 years rises to £75, then after 25 years rises to 112.5 etc. In real terms no one will be alive in 300 years time, but presumably this will have a bearing on the freehold price. Again, in terms of leasehold extension, the house will probably be no more when this becomes an issue, so will this condition be fairly meaningless, if I were to remain a leaseholder.