Equity release on 999 year leasehold property

Alstromeria

Most houses in my road and surrounding area are leasehold with 999 year leases and property prices are high. I pay £5 pa ground rent and have 917 years left on the lease. I am in my mid 70's, have no dependents and considering draw down for home improvements and travel. Is it better to purchase the freehold first before applying for a lifetime mortgage?

kingstreet

It shouldn't make a difference.

eddddy

... but the lease might say you need consent from the freeholder to make alterations/improvements. (And a fee might be payable for getting consent). The lease might even prohibit some types of alterations.

So buying the freehold might simplify things.

But you need to be careful about covenants (e.g. prohibitions) being transferred over from the lease to the freehold.


On the other hand - your freeholder will probably never come to look at your property, so they'll probably never know you've made any alterations, if you don't tell them. But if you sell the property, a nervous buyer might be worried about alterations you've made without consent.