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Original poster

What would happen if you bought a leasehold property with 34 years remaining

56 replies

soupyspoon · 07/10/2025 19:44

Assuming its likely you're going to live around another 20 years.

How cheap would it need to be to be a valid financial option?

If that flat was left in an estate, would the beneficiaries be able to renew the lease, or in fact could you renew the lease after you bought it?

OP posts:
Catsinaflat · 08/10/2025 20:02

@NumnumbirdyThe reason we extended the lease was because we would have only been able to sell to a cash buyer otherwise. By purchasing the lease at exchange we didn’t have to pay out of own pockets beforehand. The solicitor said it was common practice. Worked very well - we got a better price than if it had gone to auction or a cash buyer.
edited to add there was no downside for either party.

Original poster
soupyspoon · 08/10/2025 20:48

XVGN · 08/10/2025 08:55

It is a choice whether or not to live in a well maintained home. I would rather do so and see little difference between paying the service charge on a leasehold flat or saving the appropriate sums to maintain my own freehold house.

I have never understood why people see service charges, in principle, as an issue. I do understand that many pensioners neglect their homes in later life (see RM) either because they are happy enough or have not budgeted properly.

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Some of the service charges on some of these flats Im looking at (and these arent even specific 'retirement' flats) are around 3-4k a year. I can tell you I dont spend that.

Nevertheless I have spent around 60k over the time we've lived here, on a new kitche, bathroom, patio, driveway, windows, conservatory, over 16 years that works out nearly 4k a year. But I would not expect to move somewhere and pay the equivalent of the work done here. None of what we have spent is maintenance as such, its improvements.

OP posts:
Original poster
soupyspoon · 08/10/2025 20:53

Tiredofwhataboutery · 08/10/2025 09:19

I think you should also take into account opportunity cost. If you invested 100k then you’d expect to get a decent return. Obviously there is tax but would service charge plus opportunity cost be less than rent minus investment income (after tax)

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Yes good point, although in this hypothetical situation, the person needs somewhere to live.

OP posts:
SockBanana · 08/10/2025 23:57

soupyspoon · 08/10/2025 20:48

Some of the service charges on some of these flats Im looking at (and these arent even specific 'retirement' flats) are around 3-4k a year. I can tell you I dont spend that.

Nevertheless I have spent around 60k over the time we've lived here, on a new kitche, bathroom, patio, driveway, windows, conservatory, over 16 years that works out nearly 4k a year. But I would not expect to move somewhere and pay the equivalent of the work done here. None of what we have spent is maintenance as such, its improvements.

Show quote history

The service charge isn't likely to include any improvements anyway. It'll be an extortionate cost for general cleaning, gardening,lighting and electrical maintenance, electric bills for communal areas etc.

Improvements to the block would be billed separately, and you might not have much say in this. Block needs a new roof, you'd pay a % of the cost (divided between flats). And they don't have to pick the cheapest.

I'd rather buy a bit of land and a caravan. Or one of those holiday homes that's open 11.5 months a year.

YouForgotToTurnItOff · 08/10/2025 23:59

If you don't need a mortgage crack on

YouForgotToTurnItOff · 08/10/2025 23:59

If you don't need a mortgage crack on

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