Moving into flat in future, leases

oldwiring

We are in our 80s, and love the house we live in, but sooner or later will need to move to smaller accommodation, likely a flat.
This in mind, we've been perusing agents' ads, and noticed that a goodly number have under 80 years lease remaining.

As an incomer, what should my plan be, should such a dwelling attract me?

Cakeguts

oldwiring wrote: »

We are in our 80s, and love the house we live in, but sooner or later will need to move to smaller accommodation, likely a flat.
This in mind, we've been perusing agents' ads, and noticed that a goodly number have under 80 years lease remaining.

As an incomer, what should my plan be, should such a dwelling attract me?

It only matters if you need a mortgage.

diggingdude

under 80 years it needs to be really cheap

oldwiring

Cakeguts wrote: »

It only matters if you need a mortgage.

I don't, but one or other of us could live a fair time. Won't the property as the lease runs out be a depreciating asset? We want to leave something to our 3 children.

oldwiring

diggingdude wrote: »

under 80 years it needs to be really cheap

I'm guessing you mean compared to what would be the freehold price for a similar property, or at least one with a long lease.

The discount needed could be considerable? Working that out????:eek:

davidmcn

oldwiring wrote: »

Won't the property as the lease runs out be a depreciating asset? We want to leave something to our 3 children.

But the price of the property now ought to reflect the fact that there's a relatively short lease term remaining. So you can leave your children the money you've saved by buying a cheaper property.

hazyjo

You're concerning yourself about something that may or may not happen maybe several years into the future.

Try not to

Chances are you'll find something with a longer lease, or one that the sellers are happy to extend upon purchase.

Don't forget, one of you may still need full time care in a residential home somewhere - who knows - it may be you, not your children who end up with less dosh in your pocket if you have to sell the flat that you may or may not end up in.

You might prefer a bungalow...

Tom99

If you find one you like but the lease is low, say less than 90 year, and you are happy the price reflects the low lease, you can usually extend the lease by 90+ years immediately by asking the seller to serve a section 42 lease extension notice. This will save you having to wait 2 years.

If possible extend the lease before it dips to 80 years as after that you pay more do to having to share the marriage value with the freeholder.

bouicca21

If the lease is short then the number of potential buyers is limited as it won't be mortgageable. It could be a bargain for a cash buyer who has factored in the cost of extending the lease.

However in my somewhat limited experience, the really short leases are often probate properties, so no chance of a statutory lease extension until the lease is even shorter. Also a homeowner who wasn't bothered about the length of the lease was probably not bothered about modernising either.

Tom99

bouicca21 wrote: »

If the lease is short then the number of potential buyers is limited as it won't be mortgageable. It could be a bargain for a cash buyer who has factored in the cost of extending the lease.

However in my somewhat limited experience, the really short leases are often probate properties, so no chance of a statutory lease extension until the lease is even shorter. Also a homeowner who wasn't bothered about the length of the lease was probably not bothered about modernising either.

Re a probate sale the executor can serve a section 42 and assign providing the deceased qualified.