79 Year Lease

jcar_2

Hi.

I am looking at buying a flat with a 79 year lease. I have done some research and seen"marriage value" mentioned if its below 80 years, is this likely to make a huge difference?

Should i be concerned buying a property with this length lease. Is there any indications to guesstimate how much i would be looking at to extend it? The property is selling for £125,000.

Thanks in advance for your advice.

cattie

You can info on all aspects of owning leasehold property here. http://www.lease-advice.org/newintro.htm

You can also try to work out the average cost of extending a lease here. http://www.tenancy-agreements.co.uk/lease.php

guppy

In my opinion with a lease of this length it would make no difference to market value. The value of the landlord's interest in the property is only about £5k. The above links will tell you all you need to know though.

I just checked the calculator above and it comes out at less than £5k actually.

Of more importance is who owns the freehold, is the block well managed, are there any issues regarding future repairs etc. All these things are of far greater concern

mlz1413

Hi jcar,

I've just bought a flat on leasehold and it was for sale with only 54 yrs on lease, my mortgage company wouldn't lend on it as they ask for mortgage term (say 25yrs) plus 30yrs.

The solicitor asked the management company for extention fees and they were £6k plus their cost for 25yrs only, they will not extend for any other term. (i still bought but got vendor to extend so i now have 79yrs on lease).

So i would ask the estate agent to get owner to confirm extention details, as they pay management fees they can have direct contact which is quickest way to find out.

Good Luck