A Flat With 109 Years Remaining as Lease: Worth paying the asking price?

Lord_Frugal12

tacpot12 said:

I bought a flat with about 118 years on the lease, and extended the lease when it got down to 106 years. The cost was just over £2,200 for another 90 years. 

Your cost to extend will depend on the ground rent, and the cost of the freeholder's legal fees. My local council is the freeholder and charged £1000 for their legal fees. 

Thanks for this response. 

My offer at the asking price   was accepted. It is going through the conveyancing process. 

My concern now is the prospect of escalating ground rent. But, that's another topic!   

Lord_Frugal12

user1977 said:

Surely it depends whether the asking price already takes into account the length of the lease? You don't say whether it does or not (or whether you've even figured that out).

Thanks for this response. 

Asking price includes the length of the lease. 

CSI_Yorkshire

Lord_Frugal12 said:

cymruchris said:

You could keep it for 20 years, and it would still be easily mortgageable for the next buyer....

There are many homes with shorter leases than these that get sold every day without people worrying over the length.

Yes it's not 999 years - but it's still considerably over a 100 years. (I'm guessing you'll be long gone by the time the lease expires ) 

Is this your forever home? How long do you envisage staying there? 

If you think it's what you want - then pay what you're prepared to pay rather than faff about over a couple of thousand pounds and losing it. 

If you offer less - and someone else gets it - how would you feel?

If you offered asking - and got it - would you always wonder 'what if I'd offered £5k less?'.

The answer really is, whichever way you go, you could win, you could lose - so for all of our advice you might still make the wrong decision

This advice is really useful.

I offered the asking price. It was accepted. 

Now, I am going through the conveyancing process.  

Ton answer you question, this will not be my "forever home." Hopefully, within  three years, I aim to upgrade. 

That's a pretty rapid turnaround.

bouicca21

Lord_Frugal12 said:

My offer at the asking price   was accepted. It is going through the conveyancing process. 

My concern now is the prospect of escalating ground rent. But, that's another topic!   

Escalating ground rent - depending on the terms - is much more likely to be a problem than a 109 year lease.

Richard1212

Lord_Frugal12 said:

I would like your urgent advice, especially from experiences property experts. 

  I found a nice flat. I fell in love with it instantly. It ticks most boxes. The only concern, according to my friend, is the length of the lease. It had a 125 year lease. The building was built in 2007. Now, this flat has 109 years left in the lease. 

I am tempted to make the offer for the asking price. My friend says that I should negotiate the price down because the lease is only 109 years.   "It would be expensive to extend it later on."

My fear is this: in the same area, a property for the same asking price was snapped up quickly. I fear that if I start asking for deductions, I might lose it. 

I do have the advantage of being a cash buyer. So,  this is why my friend thinks I should negotiate. 

My heart says that in the current property market in the UK, a flat is going to sell quickly as demand had exceeded supply. Dithering over £5,000 might hurt me. I really don't want to miss out on this. Time is a pressure, as you might understand. 

 What would you do? Make the offer and agree to the asking price? Or, negotiate for  a reduction in the price because of the 109 years and not something like 999 years. 

I would be grateful for your advice, especially from those who know a lot about the leaseholds and the purchase of apartments for residential purposes. (I want to buy to live). 

Just pay asking price and enjoy the new flat that ticks all your boxes, before it is snaffled up by someone else. The 109 years is of very little or no concern. I own flats in various parts of London, all rented out, and the sort of lease length you are talking about is absolutely fine.

snowqueen555

I think people have already said it correctly. 109 in todays market has no negative bearing on the price. It is a PITA that they still do leases at 125 because you are right, at some point someone will need to extend the lease at cost. It's just another money making scam by freeholders, but much we can do about it.