The good and the bad of leasehold?

lookstraightahead

Is a 125 year lease from 2007 OK? I've had to pay to find out the leasehold details of a property I'm interested in purchasing, because the agents 'don't know yet'. I had a new build leasehold flat eons ago but in those days wasn't so wary of what can go wrong.

Am I safe enough or could I have huge bills for extending the lease/sharing the freehold at some point?

thank you - learning on the spot. It's an old converted Victorian house - 4 apartments only, a floor per apartment, and this is the top floor.

annetheman

If you plan on extending, I'd get a quote before buying or of course within the next 10 years if possible, at least, to steer well clear of the magic number. It could get more expensive if the freeholder is difficult to get hold of too, which seems to be commonplace.

I reckon the only upside to leasehold purchases is that they're cheaper, thanks to the abundance of avenues through which freeholders can use leasehold law to shaft you. I say this as a person about to buy my first leasehold, sadly, all I can afford. I sincerely hope it is abolished in place of commonhold in my lifetime - then you won't need to worry about asking this again

Good luck!

lookstraightahead

I've got a lot to think about. The place was renovated in 2007 and is in really good shape and very well maintained. I really wish it had been share of freehold with 999 year lease - they are around but usually bigger blocks. Is there something where the current owner can extend, or if not what are we talking about for extending? Thousands and thousands? 
Thank you - really helpful info 

lookstraightahead

For what it's worth I was the proud owner of an old cottage once and that also ate my money so nothing is really safe 🙂

lookstraightahead

The current owner of the flat is part of  RTM (right to manage?) of the block. That's a good thing isn't it? 

NameUnavailable

125 years in 2007 so there is still at least 111 years left to run, which is fine depending on how long you think you will stay there for. A lease becomes much more expensive to extend if it falls under 80 years, although I would say that anything under about 93 years and it will start putting people off buying (as they will almost certainly have to extend when they come to sell).

RTM is a good thing yes - it means that the leaseholders are responsible for the maintenance of the building so you have a say over what work is done and who does it. Assuming there isn't a management company it also means any money you pay is going on the property and not to pay the salaries of the management companies staff and their office overheads!

On the flipside you need to make sure things are getting done and there aren't any difficult neighbours who refuse to pay towards works etc., as then you and your fellow neighbours will have to take that other neighbour to court to enforce payment/works, and you have the legal responsibility to your freeholder to adhere to the terms of the lease in respect of any maintenance requirements (e.g. it may state that the building must be painted outside every 5 years, or communal areas must be redecorated every 3 years etc).

lookstraightahead

Thank you that is really helpful.