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78 year lease
ghump3
Posts: 2 Newbie
Hi all,
My partner and I have seen a flat that we are interested in buying as a first purchase, it is currently on the market at £210,000; however, there are only 78 years on the lease. We have read that 80 is the 'magical' number and have used various calculators to see the cost to renew could be anywhere in the region of £13,000 to £16,000.
The seller has agreed that she would start the process of renewing the lease as long as we covered the fees involved. The estate agent has told us that there is a fee to initiate the renewal process and from then on any other fees which the seller would occur. My concern with this is that we are first time buyers and only have a 5% deposit, meaning we do not have much extra cash to be used on these 'fees'.
What sort of fees would you occur during this period?
Is this the correct way to proceed with this process?
Would you purchase a flat with 78 years lease and deal with it two years later? Should it be as much as of a concern as Google is making it out to be?
How much is it likely to affect the offers we receive on mortgages?
Who would you recommend to speak to about this?
Thanks for all your replies in advance!
My partner and I have seen a flat that we are interested in buying as a first purchase, it is currently on the market at £210,000; however, there are only 78 years on the lease. We have read that 80 is the 'magical' number and have used various calculators to see the cost to renew could be anywhere in the region of £13,000 to £16,000.
The seller has agreed that she would start the process of renewing the lease as long as we covered the fees involved. The estate agent has told us that there is a fee to initiate the renewal process and from then on any other fees which the seller would occur. My concern with this is that we are first time buyers and only have a 5% deposit, meaning we do not have much extra cash to be used on these 'fees'.
What sort of fees would you occur during this period?
Is this the correct way to proceed with this process?
Would you purchase a flat with 78 years lease and deal with it two years later? Should it be as much as of a concern as Google is making it out to be?
How much is it likely to affect the offers we receive on mortgages?
Who would you recommend to speak to about this?
Thanks for all your replies in advance!
0
Comments
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If you are on a tight budget,and don't want a protracted purchase then walk away from this property....its probably not for youin S 38 T 2 F 50
out S 36 T 9 F 24 FF 4
2017-32 2018 -33 2019 -21 2020 -5 2021 -4 20220 -
How much would it be worth if the lease wasn't unmortgageably short?0
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There is currently a 2 bed flat in the same building up for £250,000. The one in question is one bedroom. I personally think the seller is asking too much for the property anyway, seeing as it has been on the market for the last 7 months. With the lease being extended I would hope it would it to be around £220,000+.0
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The seller has agreed that she would start the process of renewing the lease as long as we covered the fees involved.
So you would need £13k to £16k in cash to pay for the lease extension (probably within the next 2 to 12 months).
If you can't raise £13k to £16k in cash (plus maybe £2k to £4k in fees), you can't pay for the lease extension.Would you purchase a flat with 78 years lease and deal with it two years later?
As a rough guide, check the online calculators to see what it would cost to extend a 76 year lease.
Maybe £15k to £18k plus £2k to £4k fees? (It depends on things like property prices, new legislation, etc in the meantime.)
Would you be able to save-up that much in 2 years (whilst paying your mortgage)?0
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