Remaining lease on shared ownership property affecting value?

martyp

eddddy wrote: »

So it might be worth checking the details with your Housing Association, to make sure that's correct.

Thanks, you mean check if I'd own the house outright? I did query with them before as I heard some housing associations still retain the lease and you own 99% or something but they assured me it'd be the full freehold

Sirrah67

martyp wrote: »

Sorry that might have been my mistake there as I think the house may have been built at the end of the 80s but it was definitely down at 72 years left in 2005.

Must have been end of 70s, I didn't realise they did shared ownership then!

martyp

Sirrah67 wrote: »

Must have been end of 70s, I didn't realise they did shared ownership then!

No wonder I failed A level maths! I'll have to check into this more I think. The new mortgage lender didn't seem to have a problem with it as I had the offer.

eddddy

martyp wrote: »

Thanks, you mean check if I'd own the house outright? I did query with them before as I heard some housing associations still retain the lease and you own 99% or something but they assured me it'd be the full freehold

So you need to check how much you need to pay to buy the other 50%. How do they calculate it?

if it's 50% of of it's current value (£108k), that's illogical.

I suspect you need to pay 50% of the value it would be if you had a 80 year or 99 year lease (which would be more than £108k).

Slithery

eddddy wrote: »

if it's 50% of of it's current value (£108k), that's illogical.

Isn't it just. What's to stop you running the leasehold down till the property was virtually worthless before purchasing for 50% of that price then the property reverting to freehold.

Something's not quite right here.

martyp

Sorry correction to my previous info, there was 86 years left in 2005 with the lease commencing in 1992.
To get a valuation for the other half they would appoint a surveyor and won't accept the free valuation from the new lender so would be £150 or something to pay. Unsure how much the other half would be worth.

eddddy

martyp wrote: »

To get a valuation for the other half they would appoint a surveyor and won't accept the free valuation from the new lender so would be £150 or something to pay. Unsure how much the other half would be worth.

Yes - but the question is "How would the surveyor value it?"

Would they value it as though it had a 58 year lease, or as though it had a 99 year lease.

The value would be much higher if it was valued as though it was a 99 year lease - so it might be valued much higher that £108k.

(And as mentioned above, it would be illogical to value it as though it had a 58 year lease. It would be more logical to value it as though it had a 99 year lease.)