79 years lease remaining, worth buying?

ahsanjalil

I have viewed a flat today, which I am really interested. Its 1 bed maisonette 1st floor flat at very lovely location. Listed for £135K. But the only thing making me worry is it has 79 years of least left. I don't know whether its good remaining lease or it can be big hurdle if we decide to sell this flat after few years.

With this lease what could be the best price so we don't lose even after selling after few years? By the way in 2005 it sold for £115K, data from nethouseprices.

Many thanks for your response in advance.

Doozergirl

You can ask the vendor to extend the lease or at least obtain a quote for the renewal and perhaps knock them down by that and then extend the lease yourself. Whether you can get a discount on it depends on how many people want the flat. Some people will be happy to buy without dealing with the lease at all.

Over 70 years and no-one will have trouble obtaining a mortgage.

You may be able to extend the lease as soon as you move in, with the permission of the freeholder, otherwise you can legally force them after 2 years.

ahsanjalil

Is there any way I can find out what will be the renewal before buying? I am thinking of offering £130K first and the final. I was the first who viewed the property so not sure how many people are actually interested. But I according to my surveys recently, it won't be in the market for long because its in Slough area where many first time buyers are stretching themselves to the full extent.

Doozergirl

It has to come from the freeholder. There is a calculator somewhere but the value is a pretty subjective thing. The leaseholder also has to pay both sets of legals which are also pretty variable, although not so much.

You can offer £130k subject to the price being obtained for the lease extension.

If the market were that busy then you would need to be prepared to lose the flat to someone who isn't bothered, but the market has taken a hit and we're just about to enter the quietest time of year.

Doozergirl

Calculator
http://www.tenancy-agreements.co.uk/lease.php

The yield needs to be 4.75% for a flat; landlord's share of marriage value 50%

You can see that the value of property with and without lease is obviously subjective. At this stage I can't see the difference being more than £5000 but that's my own subjective view!

Doozergirl

greenewich girl - I missed out my link altogether, you missed off the uk bit