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Buying a leasehold House?

jatt
jatt Posts: 77 Forumite
in House buying, renting & selling
Hi everybody,

I am in process of negotiating a price on 3 bed house. It's probably a lease hold house with a lease of 999 yrs isshh and £20 yearly ground rent. There r other properties in nearby areas for similar price but freehold.

1) Is there any problem buying a leasehold house in terms of price?
2) Will there be any problem in obtaining planning permission for extension or conversion of a garage or putting in a conservatory?

3) Any thing particular i should ask for a leasehold house about lease etc??

Thanks

Comments

  • jatt
    jatt Posts: 77 Forumite
    Anybody out there

    Please help
  • country_sport
    country_sport Posts: 123 Forumite
    Just take the cost of the freehold into account when you make your offer. Normally the covenants are similar to freehold houses, but check first.
  • chuckles1066
    chuckles1066 Posts: 2,670 Forumite
    jatt wrote: »
    Hi everybody,

    I am in process of negotiating a price on 3 bed house. It's probably a lease hold house with a lease of 999 yrs isshh and £20 yearly ground rent. There r other properties in nearby areas for similar price but freehold.

    1) Is there any problem buying a leasehold house in terms of price?
    2) Will there be any problem in obtaining planning permission for extension or conversion of a garage or putting in a conservatory?

    3) Any thing particular i should ask for a leasehold house about lease etc??

    Thanks

    As long as you don't default on the ground rent you'll be fine.
    You'll always miss 100% of the shots you don't take - Wayne Gretzky

    Any advice that you receive from me is worth exactly what you paid for it. Not a penny more or a penny less.
  • chriserenity
    chriserenity Posts: 275 Forumite
    jatt wrote: »
    Any thing particular i should ask for a leasehold house about lease etc??

    If I were you I'd read the lease then you'll know if anything needs asking. If the property has a HIP available it will contain a copy which is available for free to you as a potential buyer.
    Happy to help with HIPs and EPCs
  • Andy_Hamilton
    Andy_Hamilton Posts: 660 Forumite
    Get a copy of the lease hold if you can. Mortgae companies won't touch a house with less than 50 years to run and it's normally easy to extend. In the lease hold it will say how much it will go up per year.

    You can normally buy the lease hold. If there is more than a lifetime left some companies want a quick profit
    Lets get this straight. Say my house is worth £100K, it drops £20K and I complain but I should not complain when I actually pay £200K via a mortgage:rolleyes:
  • juliedawn_2
    juliedawn_2 Posts: 108 Forumite
    Our house was leasehold when we bought it 9 years ago....we haven't had any bill for it atall...neither have my neighbours.
    Julie:p
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