Leasehold 99 years

katieb836

Me and my partner are first time buyers. We have found a property we really like, the leasehold is currently 99 years. We have read so many contradicting articles about this subject. We are concerned that when we come to sell the property the lease will be less and unattractive to buyers. Is this something to worry about? Or is 99 years ok for our first home together?

NameUnavailable

Depends how long you think you will live there for. If you think you will move on in a few years time then you will still have well over 90 years left. It's when they get into the 80's they become more of an issue and big issue if under 80.

However, you need to also look at the ground rent, and what the lease says about it increasing, as doubling ground rent is often a problem for lenders.

Also consider EWS1 and new fire safety legislation and the impact that they might have on your purchase (if it's a flat).

katieb836

NameUnavailable said:

Depends how long you think you will live there for. If you think you will move on in a few years time then you will still have well over 90 years left. It's when they get into the 80's they become more of an issue and big issue if under 80.

However, you need to also look at the ground rent, and what the lease says about it increasing, as doubling ground rent is often a problem for lenders.

Also consider EWS1 and new fire safety legislation and the impact that they might have on your purchase (if it's a flat).

Thank you! Ground Rent is £50 a year and we would obviously get a solicitor to over view the agreement. Thank,for the tip on EWS1 

The_Real_Cheddar_Bob

Find another property that isn't leasehold if you want my advice.

tanpopo

As others have said, it all depends on how long you plan on being there. It also depends what kind of lease it is and how much it costs to extend. e.g. our 1960s maisonette I could only extend the lease for 125 years anyway (this also meant that it is was relatively cheap to extend the lease).

If you are already in conveyancing, ask your solicitor to ask the Leasehold Managing Agent how much it will cost to extend the lease, how the long a lease you will get if you do extend, and also how easy it is to do. Then factor that in to the time you think you'll stay in the house.

SallyDucati

It is possible to extend leases, if done before the term reaches 80 years it is cheaper.