banjodeano Posted October 20, 2020 Share Posted October 20, 2020 Hiya everyone, i am thinking about buying a flat just for the purpose of renting out, but i notice they are all nearly leasehold, would it deter people when i eventually sell it on in a few years time? i am probably going to keep it for two or three years Link to comment Share on other sites More sharing options...
ttparsons Posted October 20, 2020 Share Posted October 20, 2020 Flats are usually leasehold as more than one property is on the same patch of ground. It’s only a problem if the lease is too short or if the ground rent can be increased substantially by the freeholder. Also make sure you know what the service charges are, and what fees the Management Company charge every time you need permission for something (e.g change of tenant), need a copy of a document (e.g. to buy/sell the flat) etc. These can be surprisingly high. Read the lease carefully. Link to comment Share on other sites More sharing options...
banjodeano Posted October 21, 2020 Author Share Posted October 21, 2020 5 hours ago, ttparsons said: Flats are usually leasehold as more than one property is on the same patch of ground. It’s only a problem if the lease is too short or if the ground rent can be increased substantially by the freeholder. Also make sure you know what the service charges are, and what fees the Management Company charge every time you need permission for something (e.g change of tenant), need a copy of a document (e.g. to buy/sell the flat) etc. These can be surprisingly high. Read the lease carefully. Thanks ttparsons, i will have a look at that, hopefully the seller should be able to tell me most of this before any purchase gets to the solicitor Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted October 21, 2020 Share Posted October 21, 2020 Er, no. Do not rely overmuch on what the vendor tells you (other than re the financial details of outgoings). After all, V just wants to sell. Instead, take clear legal advice from your solicitor. In particular, ask him/her to what extent the lease restricts or limits your power to sublet; many flats' leases do. Link to comment Share on other sites More sharing options...
banjodeano Posted October 21, 2020 Author Share Posted October 21, 2020 2 hours ago, Jeffrey Shaw said: Er, no. Do not rely overmuch on what the vendor tells you (other than re the financial details of outgoings). After all, V just wants to sell. Instead, take clear legal advice from your solicitor. In particular, ask him/her to what extent the lease restricts or limits your power to sublet; many flats' leases do. Thanks Jefferey.. Link to comment Share on other sites More sharing options...
topflat29 Posted October 22, 2020 Share Posted October 22, 2020 In England & W ales , flats are usually sold under leasehold title because mortgage lenders require the flat to be under a maintenance agreement which is satisfied by a 99 year or 125 years lease. Most mortgage lenders will not offer mortgages on leases fallen below 70 years and seeking statutory 90 years lease extension at below 80 years incurs higher cost due to inclusion of 50% of the marriage value . https://www.lease-advice.org/advice-guide/lease-extension-valuation/ Link to comment Share on other sites More sharing options...
banjodeano Posted October 22, 2020 Author Share Posted October 22, 2020 7 minutes ago, topflat29 said: In England & W ales , flats are usually sold under leasehold title because mortgage lenders require the flat to be under a maintenance agreement which is satisfied by a 99 year or 125 years lease. Most mortgage lenders will not offer mortgages on leases fallen below 70 years and seeking statutory 90 years lease extension at below 80 years incurs higher cost due to inclusion of 50% of the marriage value . https://www.lease-advice.org/advice-guide/lease-extension-valuation/ Thanks, I will check that link out tonight Link to comment Share on other sites More sharing options...
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