79 year lease

assa96

Hi all,

I am a first time buyer and have found a property that is perfect for my needs.

The big problem is that the lease is only 79 years. Is this something to be concerned about?

The property is worth 150k, and I have a 30k deposit.

Using the online calculators, it would cost me between 6-8k to extend by 90 years excluding legal fees. I can't afford to extend the lease now, but is it worth considering extending the lease in about 2 years time when I have more savings and equity?

I only plan to stay in the property for a few years, as I just want to get myself on the housing ladder.

Your help would be much appreciated.

Thanks,
Aaron.

csgohan4

the longer you leave it, the more expensive it becomes


you could try and drop the price and see if they will accept

Tom99

Maybe 6-8k, but plus both sides fees so say another 4K.


So only buy it if you have a very minimum 12K+ dicount on the price you think you can sell it for with an extended lease.


At 6-8K I assume the ground rent is quite low and fixed thoughout the term as that price sounds on the low side.

Luke86

I bought my first, also leasehold, but 97 years. I checked into it as I really didn't want leasehold, but couldn't really afford anything else in my area.

I'm sure you can get a mortgage....somewhere. But I don't think most high street lenders will give you a mortgage on 79 years as you are in the realms of marriage rights.

I would speak to a mortgage broker and see what they say.

This covers it lease-advice.org/faq/marriage-value/

Luke86

In answer to is it something to worry about. As I mentioned, I didn't want a leasehold as it is. I personally, wouldn't buy a property with less than 80 years. The fact most lenders won't lend on it means that the price tanks, because most buyers are cash. It's too unpredictable for them to lend on.

I guess the odd thing is mine is 97, my mortgage is 30, so with 10+ years left, if I didn't renew, the property that's left would also be in marriage rights!