Buying a leasehold flat - worth it?

[Knackerednow2019]

Hello I am buying a leasehold flat in London, which is absolutely the top end of what I can afford. As things stand it looks like it will cost 12k to extend, though there are changes going through parliament which could make it more or less expensive. The lease is 93 years so it's not urgent, but I'm not sure I want to stay in the UK for more than 5 years so it means I will have to renew the lease before I can sell as people don't want a shorter lease.

I have already been gazumped on 2 other London flats, and had 2 surveys back for others that showed such high problems that I didn't proceed. And so far selling up my own place, storing my stuff, and paying solicitor and surveys has cost me 10k.

I am now in a position where unless I get this flat I will have to go into rental. Because I am now without anywhere to stay in 2 months time. And buying leaseholds can take 4 months.

But if I am honest this flat isn't 100 per cent right, and it's not quite in the right area, but I am worried about being out of the property market for too long as losing any benefit from being chain free. Prices in London have dropped a little this year but it's so depressing what I can afford and I'm competing with first time buyers because I'm buying on my own.

Would you buy a leasehold right now to get back on the ladder - especially since others have fallen through? Would you buy a leasehold at all? Or would you go into rental for 6-12 months?

I really need to hear some opinions. It has to be in London as I need to be there for work for the next 3 months at least.

Thanks

Hey why the rush? If it’s not perfect, wait a bit and rent. Prices could drop further - they are historically very high / unaffordable in comparison to wages. I know rents are high but it’s better than buying a flat your heart isn’t set on. Leasehold is ok if the lease is long - a share in a freehold obviously better. Service charges are another factor putting me off buying some leasehold flats … they seem unaffordable - have you looked further out of London? Which areas have you been considering

No.

If you’re hoping to find something 5 or 10k cheaper, maybe. But London prices seem unlikely to drop significantly if you look at the history, and most flats here are leasehold.

93 years isn’t too bad. And if you’re at the top of your budget for what you want and only finding this, you’re not super likely to suddenly find something better unless renting for a while will let you save up.

If a cheaper part of London is an option you could look for a share of freehold, but those tend to be older buildings and it comes with its own troubles.

I think I’d go with the leasehold.