Buying a flat with a 99 year lease

swingaloo

Would you buy a flat with 99 years left on the lease or would you ask the seller to extend it?

eddddy

I think most people wouldn't have a problem with a 99 year lease. Mortgage lenders certainly wouldn't see that as a problem.

Just for info - there are 2 ways of extending a lease…

• The statutory route
• The informal route

The statutory route typically takes 6 to 18 months.

With the informal route… the freeholder is not obliged to agree to a lease extension, so…

• The freeholder might say "no" (or might not even reply to a request)
• The freeholder might ask for a stupidly high price
• The freeholder might take weeks or months to get their act together and get the lease extension done
• The freeholder might play games - for example, initially agree a price, then increase it later, or withdraw
• Or…the freeholder might be decent and honest - and agree a fair price, and get the extension done quickly

So insisting on a lease extension before buying might kill the deal.

gwynlas

99 years was until recent times a standard lease length and would satisfy mortgage lenders as more than 70 years left after 25 year mortgage period,

Jmp0001

When I bought my fleasehold flat (new build) the lease was 99 years

JJAYLEEDS

I'm looking at buying a leasehold retirement flat (because much lower prices). Quite a few have less than 90 years left on lease. I think the 2024 regulations will make extending lease easier and cheaper. But this isnt clear, especially not for retirement properties. Also, massive worry that if you die, the estate has to pay the service charge whilst the will is sorted out (a year) then while the property is being sold. I cant afford rent for retirement property. Could @moneysavingexperts do a session on this subject. It is massive cost and worry. And many people cant afford to buy freehold.

BungalowBel

Don't forget the shorter your lease gets, the less your property is worth, especially if it is less than eighty years.

ExEstateAgent

https://forums.moneysavingexpert.com/discussion/comment/82076388#Comment_82076388

You won't be able to worry when you're dead! Seriously though, the service charge etc., would usually be paid out of the estate once the flat was sold.

TroubledTarts

Does it come with a flake being a 99?

mlz1413

Would I buy a flat with 99 years on the lease… absolutely IF the price was right.

Would I ask the seller to extend… probably IF they would foot the bill and sell for less than the costs involved.

If you have over 80 years then 'marriage value' isn't applied and it's normally well worth extending. But at 99 years you know you HAVE to do the extension soon, like really soon, so the price should reflect that.

If the owners extend the lease prior to selling then they can get top price after extending, but if they do it during the sale process it will significantly slow the process so they will have a limited market of buyers.

You need to decide what you want.. cheap price and extend lease after, or buy with extended lease and pay more but no legal process.

Catonthemoon

OP You’re obviously in the 55+ age group. If you plan to live there for the rest of your life & it’s all you can afford, then I don’t see why not.

The only downside I can see is if you decided to move after a few years, you might have a very long wait to get a sale (due to the limited market).

whaleroad

https://forums.moneysavingexpert.com/discussion/6675602/buying-a-flat-with-a-99-year-lease

Not if I was ever planning to sell it, no.