Buying very short lease property.

eddddy

NameUnavailable said:

eddddy said:

Albermarle said:

The last point would seem to be an area ripe for argument/dispute. How could you return any normal property to how it was probably a hundred years ago? Rip the central heating out ? Put gas lights back in ? Remove the bathroom maybe ?

It's more the general condition of the flat, that would be of concern.

For example, if the windows or floor joists are rotten, or the wall / ceiling plaster is in poor condition.

Some leases make leaseholders responsible for the roof - so if the roof is rotten, the leaseholder might have to pay for it to be replaced.

Surely most of that kind of stuff will be covered by the service charge / maintenance - so the freeholder would need to have work carried out which of course could be challenged if not reasonable etc. (yes some leases will state that the roof if entirely the responsibility of one leaseholder but we don't know any details here).

The wall and ceiling plaster will in the flat will almost certainly be the leaseholder's responsibility.

Windows and floorboards are usually the leaseholder's responsibility.

Floor joists are often the leaseholder's responsibility.

The comment about things being covered by the service charge / maintenance is probably a bit misleading to a FTB. It might be more helpful to say that the freeholder might be responsible for arranging maintenance and repairs for some parts of the building, but the leaseholders would have to pay for the maintenance and repairs.

As you say, neither you or I (or the OP at this stage) know the details of the property's lease.

Threesheds

Thanks all. From what I'm reading it may make sense. I'm not really bothered about extending the lease, I guess that would be a bonus.
The saving in rent would make it viable over the time assuming the fees are reasonable.
I have not seen the property in person but from the photo's I am guessing 1960's. It looks liveable but would need redecoration and some updating.
Hopefully going for a viewing.

EssexHebridean

Although generally speaking a lease that short would be a major red flag, it really would seem to be a good option for you OP - I wish you luck with it! 

ThisIsWeird

Good luck, Threesheds - it's an interesting one, so please keep us updated.
Any idea how much a similar flat with a 'long' lease would be? 
On paper this makes a lot of financial sense. Just check the provisos given by others - any major work required, maintenance charges, etc. 
If you do buy, then explore the cost of lease extension, not necessarily with a view to doing this yourself, but to make it viable to a new owner; if the sums added up and you were to sell it within, say, 10 years, there's a good chance you'd get some or much of your initial purchase cost back, possibly more - the new buyer will know what the total cost will be for flat+extension, so if this is less than comparable flats, it'll be a goer. So, almost certainly, if you sell within the lease expiry, you'll recoup summat, so it won't even have cost you £25k!
Bear in mind that the extension cost will go up as the lease shortens. 

Threesheds

Well my pondering failed me.
An offer has been accepted, but I did find out a couple of things. The property belonged to an elderly person who had passed away and the family wanted a quick sale.
Apparently it was sold as seen, including contents !
I asked to be kept informed if similar property came up for sale, she said it was unusual but they do have commercial leases, which somebody mentioned earlier. Apparently these can be even cheaper ? 
I wanted to ask more questions but I got the feeling I was not their target customer. 😕
Thanks all.