Leasehold flat - Help needed..

yasmin2

I have been lurking (more like stalking at some times!!) these boards for a long while now and have always been impressed with the advice/discussions. I wonder of someone can help me with my problem..

I am looking at a two bed flat with a 70 year lease. Ay my previous home was a house, I have very little experience of this. My questions are

Is it easy to extend a lease? Where can I go for further non-biased information about it?

Is it acceptable to sell with such a low lease? I thought that the accepted term was around 95+ years. Am I wrong?

The EA told me that a lease would cost about £3000 which could be purchased at the same time as the house. When I suggested that this would result in a similar reduction in asking price, she started going on about how it was a reasonable asking price etc etc..

Possibly a silly question but I am wondering why the seller didn't increase the lease herself??? Would this not have made the flat more attractive to a purchaser.

Thank-you for any information/prods in the right direction.;)

EdInvestor

yasmin2 wrote: »

I am looking at a two bed flat with a 70 year lease. Is it easy to extend a lease? Where can I go for further non-biased information about it?

https://www.lease-advice.org.uk

Is it acceptable to sell with such a low lease? I thought that the accepted term was around 95+ years.

Some leases are as low as 15 years. Down to around 70 yeaqrs it has little effect on the price.Under that it does, and extending the lease starts getting more expensive.

The EA told me that a lease would cost about £3000 which could be purchased at the same time as the house. When I suggested that this would result in a similar reduction in asking price, she started going on about how it was a reasonable asking price etc etc..Possibly a silly question but I am wondering why the seller didn't increase the lease herself???

Typically what happens in a 70 year case is the vendor sets the process in train (you need have lived in a property for 2 years to be entirled to ask for an extension) by negotiating a price and getting the agreement of the freeholder. Then it's up to the new owner to pay for the extension once it's processed.

As to whether or not there should be a price reduction to reflect the cost of the extension, that's a matter for negotiation. The vendor may say that the price has been set to include this cost. Is the flat cheaper than comparable ones with longer leases?
In other cases, a flat may have very desirable features which easily compensate for the cost of extending the shorter lease.

Richard_Webster

Go to Landlordzone.co.uk and and their Long Leasehold board. Put up details of the asking price for the flat, the ground rent, and length of lease and its location and you will probably find someone will come and give you some figures for the likely cost of an extension if obtained by the seller - but would like a £10 donation to Children in Need!

yasmin2

Thank-you for the speedy responses and advice..

Are there any situations where the freeholder would deny an extension of the lease? Are there any other issues I need to consider? Is it a fairly straightforward procedure?

Will look at the websites you mentioned now.. Thank-you

narced

yasmin2 wrote: »

Is it acceptable to sell with such a low lease? I thought that the accepted term was around 95+ years. Am I wrong?

First flat I ever bought had a 70-something year lease. There was no problem getting a mortgage and no problem selling it a year and a half later. You might also want to look into what it costs to buy the leasehold.