Can someone explain leasehold to an idiot

da_rule

Also, the value of the property should be dependent on the remaining term of the lease. This is something that it seems a lot of estate agents forget when valuing leasehold property. So, in theory, you should only pay what it’s worth based on the terms of the lease.

iammumtoone

Pixie5740 wrote: »

Yet it works in Scotland. My title deeds tell me how much of the roof and other shared areas I own and therefore for what I am reposonsible.

So what happens if for example the roof needs repairing, your lease says you should pay 1/4 but one person out of that quarter does not pay?


The are arrangements like this in England I nearly bought one. However the solicitor pointed out the above scenario and the vendors could not answer hence I pulled out (I was aware the buyer before me pulled out as well, if for the same issue or not I will never know).

needacamera

jim1999 wrote: »

That's not very realistic though, because after living in a property for 2 years you have the right to extend the lease. You wouldn't let it run down to zero.

I'm sure there are some exceptions, but for the vast majority of leaseholds that is why it isn't a scam.

Oh, so you always have the right to extend? I thought the freeholder could say no and force the lease to run out and grab the property all paid for.

davidmcn

iammumtoone wrote: »

So what happens if for example the roof needs repairing, your lease says you should pay 1/4 but one person out of that quarter does not pay?

Leaving aside the fact that we don't have leases...you sue them until they do pay up. Or everyone else stumps up their share, and puts a charge on the debtor's flat to ensure they will at least pay whenever they sell/remortgage.

AndyKeogh

The way I see leasehold is either of these two trains of thought

Flat = less than 60 years walk away
House = less than 60 years walk away if over 60 years check who the freeholder is and get some enquiries to the cost after 2 years if more than 10k walk away. You can get a real bargain with a leasehold house as loads of people walk away but find out who the freeholder is a private individual or a local company are far harder to get a good deal from than a council or a national homebuilder

Katgrit

If it helps to reassure you its not just a new thing (as the recent bad publicity seems to be concerning). Up North loads of the old terraced housing is leasehold, more commonly referred to as "ground rent" or "chief rent". Mine was on an original lease of 999 years, there's 860 left and the ground rent is £1.20 a year. Freehold is obviously best, but leaaehold aint all that bad in the right circumstances.