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Short Lease On A Flat

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We are looking at a flat but have been told the lease is 68 years.

Our mortgage company are fine with it, but would you guys say this was short enough to be concerned about?

What is involved in extending the lease? The EA has suggested around £8k, but we can't bundle the transaction in with the purchase as seller is in a massive rush and therefore pricing quite keenly.

How negotiable is it? I would have thought the lease holder would have been happy with £3k today than nothing for the next 68 years!

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Be careful. I bought a flat with 73 years left. Quoted £8k to renew. 5 years later when I came to sell, renewing the lease cost me £17k! Lesson learnt. I wouldn't buy another leasehold with less than 85 years left.

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Be careful. I bought a flat with 73 years left. Quoted £8k to renew. 5 years later when I came to sell, renewing the lease cost me £17k! Lesson learnt. I wouldn't buy another leasehold with less than 85 years left.

Eek. It's the personal anecdotes like this I am interested in as I've read a fair bit about it. So thanks.

Did you not find the £17k fee negotiable? After all, you didn't have to renew at all did you? Seems like a battle of wills to me as a lease renewal in 60 odd years is no good whatsoever to the freeholder, right?

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We are looking at a flat but have been told the lease is 68 years.

Our mortgage company are fine with it, but would you guys say this was short enough to be concerned about?

What is involved in extending the lease? The EA has suggested around £8k, but we can't bundle the transaction in with the purchase as seller is in a massive rush and therefore pricing quite keenly.

How negotiable is it? I would have thought the lease holder would have been happy with £3k today than nothing for the next 68 years!

How much is the flat worth? 8K for an extension to a 68 year lease sounds low.

The leaseholeer will be quite happy with you rejecting his offer to buy today, the value of the reversion increases exponentially the longer that you leave it.

tim

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Eek. It's the personal anecdotes like this I am interested in as I've read a fair bit about it. So thanks.

Did you not find the £17k fee negotiable? After all, you didn't have to renew at all did you? Seems like a battle of wills to me as a lease renewal in 60 odd years is no good whatsoever to the freeholder, right?

Nope. It extremely valuable to him.

tim

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Eek. It's the personal anecdotes like this I am interested in as I've read a fair bit about it. So thanks.

Did you not find the £17k fee negotiable? After all, you didn't have to renew at all did you? Seems like a battle of wills to me as a lease renewal in 60 odd years is no good whatsoever to the freeholder, right?

I had a buyer offering full asking price on condition the lease was renewed. Agreed a price of 14k with the freeholder if it was renewed before a certain date. Solicitors sat on their hands, date expired and the price went up to 17k. The solicitors were well aware of the deadline and I was under the impression from them that the renewal was agreed in time and payment would be paid on completion. They called me the day after the renewal date and informed me that because the funds were coming out of the sale, I had missed the deadline and the price had risen to 17k, they were as surprised as me. I told them I could have borrowed the 14k from a bank instead! Never assume lawyers are on the ball, another painful lesson :angry:

In hindsight I would have renewed the lease as soon as I bought the flat, I would advise you to do the same for 8k, that sounds cheap.

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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