To buy or not to buy freehold?

[Jem01]

Hello

Looking for advice about whether or not to buy the freehold of a 2 bed 1930s purpose built flat in Blackheath currently owned by an elderly member of my family.

I have the opportunity to buy this but only interested from the perspective of the added value on sale as I wouldn’t ever live there (or don’t intend to keep for rental income).

So my question is, does anyone have an idea of how much value (in percentage terms) a freehold flat has over leasehold?

[CrunchieFeeling]

Does the relative own the leasehold flat as well as the freehold?

If you would own the leasehold but not the freehold then it's probably worth owning the freehold.

If you would own the freehold to a leasehold flat that you don't otherwise have any interests in then it depends how long is left on the lease and whether you will have the opportunity to sell the lease extension to the leasehold owner

[Needmoresleep]

How long is left on the lease? There should not be a problem with resale if it is over 80 years. So you do well to think about it at around 90.

Below 80 and buyers and their mortgage companies get nervous. Plus after about 70 (too lazy to check) the price starts rising steeply.

It's a bit like major works. Better to do it before sale because buyers will discount the cost and also discount some more for the stress and risks involved.

Above 90.and don't bother.