Buying a lease hold flat?

[HappyHippyDad]

Evening all..

Just wondered if anyone here has any experience of buying a house or flat that is leasehold?

I'm thinking of buying a flat and its leasehold, it has about 68 years on the lease. From what I've read it should have above 80 years otherwise could be hard to sell (difficult to get a mortgage)?

Just looking to see if anyone has bought or sold a leasehold and if everything went smoothly or if they had problems?

Cheers..

 

[rapparee]

How much will an extension of the lease cost.

That is the first thing you need to find out. You are entitled to extend the lease 2 years after living in the property

 

[Octopus]

Consult a solicitor.

But I would agree that with only 68 years left you may not even get a mortgage on it.

 

[HappyHippyDad]

How much will an extension of the lease cost.

That is the first thing you need to find out. You are entitled to extend the lease 2 years after living in the property

Not sure how much it would cost. Websites say approx £15,000 to increase to a 99 year leasehold, yet the estate agents who are selling the flat say about £400!! In other words, I dont know .

I would find out exactly how much it would cost to extend before buying. But i'd be interested in what others have had to pay to extend and also if they found it necessary to extend?

 

[uksparks]

I'd stay away from anything lease hold myself, you are always best off owning the ground you sleep on!

 

[londonfire]

Having just sold and completed on a leasehold flat last week. I can honestly say i would never buy anything that is not freehold ever again.

Was always paying for things that were out of my control like damage or dumped rubbish. Also as more regulations come into place like fire alarm systems being tested quarterly the leaseholder will always be looking for more money. Was paying £150 a month in service charges when i could have been putting that on a mortgage.

 

[Octopus]

I'd stay away from anything lease hold myself, you are always best off owning the ground you sleep on!

Not sure that's a sensible suggestion with a flat. You need the "safety net" of the management of the property for cleaning, maintenance etc. There WILL be monthly charges.

 

[rapparee]

Not sure how much it would cost. Websites say approx £15,000 to increase to a 99 year leasehold, yet the estate agents who are selling the flat say about £400!! In other words, I dont know .

I would find out exactly how much it would cost to extend before buying. But i'd be interested in what others have had to pay to extend and also if they found it necessary to extend?

It will be necessary to extend. The price goes up by an extra 50% when it drops below 80 years. You won't be able to extend until 65 years. When i asked you what the extension cost was, it was a rhetorical question, i didn't want to know your private business, but it is important that you realise the cost. It is also linked to the cost of the property so if house prices go up over the next 2 years, your fee also goes up. You will also have to find out what the maintenance costs for the apartment are.

It may work for you, but don't go in half cocked.

 

[HappyHippyDad]

Thanks guys,

It was only a thought. I'll look into it a little more before any firm decision, but I think saving a little more and buying freehold is going to be the more sensible option!

 

[uksparks]

Sorry I missed that it was a flat, that's a bit different then. Buy a house!

 

[Engineer54]

Virtually All flats/apartments are leasehold properties, leasehold houses on the other hand are much rarer than Freehold houses., though i did hear that some housing estate developers are hanging on to the freeholds and selling on with lease holds. I know of quite a few estates in Bracknell and in Kent where this has taken place...

 

[tazz]

Lease hold can be a nightmare.....Bellway and other companies are building flats at an enormous rate....their idea is to charge ground rent plus maintenance....this puts aprox £190 ground rent & maintenance per month on the bill. This has been a growing concern on what is called affordable housing in the UK

 

[sammyshooter]

Depending on your area, there are nominated surveyors who calculate how much an extension of the lease will be. This normally happens around 80 years. Is it ex local authority or a private development? Your right about the mortgage part!

 

[Engineer54]

Lease hold can be a nightmare.....Bellway and other companies are building flats at an enormous rate....their idea is to charge ground rent plus maintenance....this puts aprox £190 ground rent & maintenance per month on the bill. This has been a growing concern on what is called affordable housing in the UK

Commonly called ''Out and Out Greed!!

 

[Breeze]

Evening all..

Just wondered if anyone here has any experience of buying a house or flat that is leasehold?

I'm thinking of buying a flat and its leasehold, it has about 68 years on the lease. From what I've read it should have above 80 years otherwise could be hard to sell (difficult to get a mortgage)?

Just looking to see if anyone has bought or sold a leasehold and if everything went smoothly or if they had problems?

Cheers..[/QUOTE
try to agree a price for the lease renewal before purchase, I personally would touch it with a barge pole( I keep it my pipe vault before you ask) my first flat I bought had a 989 year lease when I bought it, as it 10yrs old,
im guessing the flat is a good price, probably why your interested, but the reason it's cheap is the short lease