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Original poster

87yr leasehold

19 replies

Amichelle84 · 03/02/2022 06:58

Viewing a leasehold property today, 87 yrs left on lease. Service charge is only £1 a year.

We're first time buyers and I'm a bit conscious that's not long left and may have implications if we want to sell down the line.

Any advice or points for us to note?

OP posts:
Redlorryyellowduck · 03/02/2022 07:22

There's only 17 years left for the property to be mortgagable. You'll need to factor in the cost of extending the lease.
Make enquiries as to whether neighbours have managed to do this, how much it cost etc.
An absent leaseholder would be an admin nightmare.

beggingforsleep · 03/02/2022 07:32

We extended our lease as sellers as one of the conditions of sale. I think it's quite common. I'd ask the estate agent if the sellers are planning on doing this, they may already have been advised to.

Original poster
Amichelle84 · 03/02/2022 13:33

@beggingforsleep

We extended our lease as sellers as one of the conditions of sale. I think it's quite common. I'd ask the estate agent if the sellers are planning on doing this, they may already have been advised to.
How long would you suggest extending it for? We certainly don't have the extra cash to do it ourselves so it's a good idea to see if the seller would.
OP posts:
CorrBlimeyGG · 03/02/2022 13:38

Do you mean the ground rent is £1 a year? Is it a house or a flat?

beggingforsleep · 03/02/2022 13:43

@Amichelle84 ours was a share of freehold so was probably easier but we extended it by 1,000 years but really you only need 100 added on. It cost about £2k from memory for solicitors fees.

I'd just speak to the estate agent. I'm sure they'll already have advised the sellers that it's something that they should sort out as it'll be a problem for any buyer.

Original poster
Amichelle84 · 03/02/2022 13:55

@CorrBlimeyGG

Do you mean the ground rent is £1 a year? Is it a house or a flat?
The agent said service charge, I'm going to check if he means ground rent on the viewing or if that's an additional fee.

It's a House.

OP posts:
Original poster
Amichelle84 · 03/02/2022 13:55

[quote beggingforsleep]@Amichelle84 ours was a share of freehold so was probably easier but we extended it by 1,000 years but really you only need 100 added on. It cost about £2k from memory for solicitors fees.

I'd just speak to the estate agent. I'm sure they'll already have advised the sellers that it's something that they should sort out as it'll be a problem for any buyer. [/quote]
Brilliant - thank you.

OP posts:
ISeeTheLight · 03/02/2022 13:58

A leasehold house?

Don't do it. Just don't do it.

SeasonFinale · 03/02/2022 13:59

I very much suspect it is the ground rent not service charge. The service charge covers the maintenance, buildings insurance etc. If there is no service charge and you own a share of the freehold you need to find out how the joint buildings insurance is paid and how maintenance is paid etc. And whether all freeholders are contributing and up to date with contributions.

I would also ask that the lease extension is done prior to completion by the seller.

YellowLemonz · 03/02/2022 14:01

I bought a leasehold house with 87 years on!
We pay £40 a year.
No issues when buying, sols etc.
When we come to sell we're going to buy the freehold.

Babyvenusplant · 03/02/2022 14:05

My nan's house was leasehold and she bought the lease outright for £12,000 a couple of years ago

adoreyou · 03/02/2022 14:06

Don't do it.

Especially a house!

Just Google some of the issue lease holders have with leave hold properties .

Our flat cost £20k to sort our lease out. Fair enough it was rather short when we bought as we were very young. But I wouldn't buy lease hold ever again. It's just money making...

itwasntaparty · 03/02/2022 14:13

@YellowLemonz

I bought a leasehold house with 87 years on! We pay £40 a year. No issues when buying, sols etc. When we come to sell we're going to buy the freehold.
How do you know the freeholders will sell?
Twattergy · 03/02/2022 14:14

I wouldn't touch with barge pole unless the vendor pays for an includes a new extended lease. These things cost a lot of money and take up a huge amount of time and you'll be funked trying to sell the property on unless you have a much much longer lease. Don't bother adding only 20 years, if you renew it needs to be 100yrs plus.

YellowLemonz · 03/02/2022 14:22

How do you know the freeholders will sell?

Half the estate has bought it with no issues. we get letters every couple of year or so asking if we want to buy.

Original poster
Amichelle84 · 03/02/2022 14:22

Thanks everyone.

Weirdly the house (semi detached) is "1a" so I assume the one next door is "1" so maybe it's shared with them too.

We definitely wouldn't be able to afford extending the lease so I'll see if the seller will and if not we won't bother.

OP posts:
pilates · 03/02/2022 14:34

Try for a freehold property if you can afford it.

FAQs · 03/02/2022 14:41

It’s a bit too close to the marriage values, this link explains it well www.simpsonmillar.co.uk/media/what-is-marriage-value/

Original poster
Amichelle84 · 03/02/2022 17:01

Well...we didn't like it anyway so that solves that.

Thank you for your messages.

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