63 yrs left on lease plus leaseholder selling up?

[54isanopendoor]

Would this be a terrible idea?
Currently £20 ground rent & no annual service charge.
Presume leasholder selling lease of flat above his own shop when shop sells?
Presumably the new owner of the lease could charge what they liked?

No idea about leaseholds (clearly).
Seller says that lease can be incr to 99 years.
Current leasholder wants £25k (20% of value of property) but 'can go to tribunal who will set fair rate which woudl be more like 12K'.
So, is that the case for ground rent / service charge or is that just open season?

Hell. No.

Id run an absolute mile.

Do you mean freeholder instead of leaseholder

@KylieWasHere
It's a flat above a shop.
the shop owner, who owns the lease on the flat, is selling up.
which I assume includes the lease on the flat so someone else would own & control the terms of this

Have you tried asking the freeholder to buy the new lease and reflect it in the price?

Also i think from the start of this month all new leases are 999 years. Worth having a look into it

Hi. I've met the sellers. Nice people. but the man has cancer I think they just want rid asap with as little fuss as poss so prob don't want to mess re leases?

so a new lease would be 999 years but this one if sole would only be 63? hmm not so good. But it would take more than a month for a purchse to go through?

Ask on the MSE House buying, selling etc Forum, lots of posts about leases on there.

Are you a cash buyer? It won’t be easy to get a mortgage on a 63 year lease.

Nope. The reform only means any new lease time has to be a peppercorn (nil) rent. There’s no 999 year law.
There will be a service charge stated in the lease but it sounds like it’s only charged on an as-needed basis.
Given that the seller just wants rid, I’d leave it to be honest.

www.gov.uk/government/publications/the-leasehold-reform-ground-rent-act-user-guidance/leasehold-reform-ground-rent-act-2022-guidance-for-leaseholders-landlords-and-managing-agents

Who owns the freehold? Would you have the option of buying it?