What's the point of buying a Leasehold property?

diystarter7

Ath_Wat said:

diystarter7 said:

Ath_Wat said:

diystarter7 said:

Ath_Wat said:

diystarter7 said:

SallyDucati said:

Apologies if it's already been said, but I think the most important point is to not let a lease get below 80 years, as past that point it becomes much more expensive to extend.   And also is the point the property value will drop due to mortgage companies not liking it.  Unfortunately a lot of people don't realise this. 

I did extend the lease on my last flat and tried to tell a neighbour the pitfalls of not doing so, but she didn't see why she should spend the money, until it got to 74 years and she ended up on a standard variable rate on her mortgage as she couldn't get a new deal.  Ended up costing her a lot more than she needed to.

A great post highlighting the massive pitfalls of a lease on a house where you do not really need one.

You "need one" if the house you want to buy has one.  Nobody is suggesting that everyone rush to buy leasehold houses,.  Everyone knows it's not a positive.  What people are saying is that when you buy any house the advantages it has to you can outweigh the disadvantages, even if one of those disadvantages is that it is leasehold.

As with others here, we are just highlighting negatives. As far as I can see, there are NO positives buying a leasehold house,
just negatives.

Yes, everyone knows that.  In the same way having a window that won't open is always a negative, but that doesn't mean nobody should ever buy a house with a window that won't open.  It's a negative that can be factored in and doesn't overrule all else.

It's a massive negative and one the vast majority would run several miles from.
Leases can slow up, must up, and frustrate both sellers and buyers alike.

I've known people buying a leasehold flat thinking its a stepping stone to house and only there for a couple of years and circumstances change they are lumbered with it often fees rising etc

It really is not something "the vast majority would run several miles from".  It's the norm in many areas, even for houses.

I couldn't tell you how many people I know who have bought leasehold flats.  It's a lot.  I know a fair few who have bought leasehold houses.  I don't personally know of anyone who had any problem at all selling them and moving on.  Anecdotal evidence, eh.  I know problems do occur but you are massively overstating the case.  Maybe your personal experience is not as representative as you believe.

So why is the government banning sale of all new leasehold houses? Why is there not an uproar if a leasehold house is ok?

Leaseholds, as another poster said, creates problems of its own come to buying selling and additional costs. Often you can't by a flat without a lease but houses, its a big, no, no for me and everyone I know unless its the bargain of the year and you are going to do up and sell within a few weeks IMO

eddddy

diystarter7 said:

So why is the government banning sale of all new leasehold houses? Why is there not an uproar if a leasehold house is ok?

I think it's more to do with widespread mis-selling and widespread use of unfair contract terms, rather than a problem with leaseholds.

As a simple example...

• Developers were  selling leasehold houses for, say, £250k.

• But the developers weren't clearly explaining to buyers that buying the freehold would cost another £40k (because of the high escalating ground rent).

• So people didn't realise that the "full price" of the house was actually £290k

So the Competitions and Markets Authority are taking action against the developers for misleading buyers and using 'unfair contract terms'.

And to stop developers doing the same nasty tricks again, the government are (almost) banning the sale of new leasehold houses.


(So strictly speaking, it's not really a leasehold issue. Developers could equally mislead buyers and use unfair contract terms when selling a freehold house.)

Ath_Wat

diystarter7 said:

Ath_Wat said:

diystarter7 said:

Ath_Wat said:

diystarter7 said:

Ath_Wat said:

diystarter7 said:

SallyDucati said:

Apologies if it's already been said, but I think the most important point is to not let a lease get below 80 years, as past that point it becomes much more expensive to extend.   And also is the point the property value will drop due to mortgage companies not liking it.  Unfortunately a lot of people don't realise this. 

I did extend the lease on my last flat and tried to tell a neighbour the pitfalls of not doing so, but she didn't see why she should spend the money, until it got to 74 years and she ended up on a standard variable rate on her mortgage as she couldn't get a new deal.  Ended up costing her a lot more than she needed to.

A great post highlighting the massive pitfalls of a lease on a house where you do not really need one.

You "need one" if the house you want to buy has one.  Nobody is suggesting that everyone rush to buy leasehold houses,.  Everyone knows it's not a positive.  What people are saying is that when you buy any house the advantages it has to you can outweigh the disadvantages, even if one of those disadvantages is that it is leasehold.

As with others here, we are just highlighting negatives. As far as I can see, there are NO positives buying a leasehold house,
just negatives.

Yes, everyone knows that.  In the same way having a window that won't open is always a negative, but that doesn't mean nobody should ever buy a house with a window that won't open.  It's a negative that can be factored in and doesn't overrule all else.

It's a massive negative and one the vast majority would run several miles from.
Leases can slow up, must up, and frustrate both sellers and buyers alike.

I've known people buying a leasehold flat thinking its a stepping stone to house and only there for a couple of years and circumstances change they are lumbered with it often fees rising etc

It really is not something "the vast majority would run several miles from".  It's the norm in many areas, even for houses.

I couldn't tell you how many people I know who have bought leasehold flats.  It's a lot.  I know a fair few who have bought leasehold houses.  I don't personally know of anyone who had any problem at all selling them and moving on.  Anecdotal evidence, eh.  I know problems do occur but you are massively overstating the case.  Maybe your personal experience is not as representative as you believe.

So why is the government banning sale of all new leasehold houses? Why is there not an uproar if a leasehold house is ok?

Leaseholds, as another poster said, creates problems of its own come to buying selling and additional costs. Often you can't by a flat without a lease but houses, its a big, no, no for me and everyone I know unless its the bargain of the year and you are going to do up and sell within a few weeks IMO

That's fine,  You, and everyone you know, are quite simply wrong, and behaving like over emotional children.  There's really no more to say on the matter.

stamford5957

Slithery said:

If I was looking to purchase at the minute I'd happily go for a cheaper property with a 50 year lease over a more expensive one with 100+ years left.

I have no dependants and won't be around in 50 years so why would I waste the money?

I'm in my mid 60s...just sold my house and renting while I find my next home and thinking of doing the same thing - buying a flat with a 80 year lease.  I have one son but as said by someone at a pensions seminar...why worry about dependents...you'll be gone so let them sort it out themselves!!!

Ath_Wat

stamford5957 said:

Slithery said:

If I was looking to purchase at the minute I'd happily go for a cheaper property with a 50 year lease over a more expensive one with 100+ years left.

I have no dependants and won't be around in 50 years so why would I waste the money?

I'm in my mid 60s...just sold my house and renting while I find my next home and thinking of doing the same thing - buying a flat with a 80 year lease.  I have one son but as said by someone at a pensions seminar...why worry about dependents...you'll be gone so let them sort it out themselves!!!

Descendants surely, rather than dependents.  If they are dependents you have to worry about them.  Generally you hope children, in  particular, will not be dependent on you by the time you die, but if they still are there will be some reason for that so you certainly should provide for them if possible.

stamford5957

Ooops...sorry - meant descendants.

Norman_Castle

diystarter7 said:

Ath_Wat said:

diystarter7 said:

Ath_Wat said:

diystarter7 said:

Ath_Wat said:

diystarter7 said:

SallyDucati said:

Apologies if it's already been said, but I think the most important point is to not let a lease get below 80 years, as past that point it becomes much more expensive to extend.   And also is the point the property value will drop due to mortgage companies not liking it.  Unfortunately a lot of people don't realise this. 

I did extend the lease on my last flat and tried to tell a neighbour the pitfalls of not doing so, but she didn't see why she should spend the money, until it got to 74 years and she ended up on a standard variable rate on her mortgage as she couldn't get a new deal.  Ended up costing her a lot more than she needed to.

A great post highlighting the massive pitfalls of a lease on a house where you do not really need one.

You "need one" if the house you want to buy has one.  Nobody is suggesting that everyone rush to buy leasehold houses,.  Everyone knows it's not a positive.  What people are saying is that when you buy any house the advantages it has to you can outweigh the disadvantages, even if one of those disadvantages is that it is leasehold.

As with others here, we are just highlighting negatives. As far as I can see, there are NO positives buying a leasehold house,
just negatives.

Yes, everyone knows that.  In the same way having a window that won't open is always a negative, but that doesn't mean nobody should ever buy a house with a window that won't open.  It's a negative that can be factored in and doesn't overrule all else.

It's a massive negative and one the vast majority would run several miles from.
Leases can slow up, must up, and frustrate both sellers and buyers alike.

I've known people buying a leasehold flat thinking its a stepping stone to house and only there for a couple of years and circumstances change they are lumbered with it often fees rising etc

It really is not something "the vast majority would run several miles from".  It's the norm in many areas, even for houses.

I couldn't tell you how many people I know who have bought leasehold flats.  It's a lot.  I know a fair few who have bought leasehold houses.  I don't personally know of anyone who had any problem at all selling them and moving on.  Anecdotal evidence, eh.  I know problems do occur but you are massively overstating the case.  Maybe your personal experience is not as representative as you believe.

So why is the government banning sale of all new leasehold houses?

https://www.gov.uk/government/publications/the-leasehold-reform-ground-rent-act-user-guidance/leasehold-reform-ground-rent-act-2022-guidance-for-leaseholders-landlords-and-managing-agents

"The Act will make home ownership fairer and more transparent for millions of future leaseholders. The reputation of the leasehold system has been damaged by unfair practices that have seen some leaseholders contractually obligated to pay onerous and escalating ground rents, with no clear service in return. The Act will prevent this from happening in future, tackling significant ambiguity and unfairness for future leaseholders."

NameUnavailable

If I retire when I'm 67 I would be quite happy buying a cheaper leasehol with a 40 year lease remaining. Who gives a  damn what it's worth when I die?

In fact it's a benefit of leashold! The opportunity to buy short lease for a lower price than you'd pay for a long lease.