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Can you buy the lease on a flat?
Lease extensions are cheaper Plus leaseholders must pay ground rent (usually small) and service charges (often a fair whack) to the freeholder. Buy the freehold, and you can usually extend the lease to 999 years for free. Flat-owners with a share of freehold still have a lease.
Is buying a leasehold flat a good idea?
If you want to buy a flat, rather than a house, then you have little choice. With a well-written lease and a properly managed building, a leasehold flat should provide a perfectly good home and a secure investment.
Is it a bad idea to buy a leasehold property?
Buying leasehold is not a bad move and you might find it more affordable but you need to know all the facts. Otherwise, hidden surprises, such as short leases, costly ground rents, and excessive maintenance bills might make it more complicated and expensive than you first thought.
How long should the leasehold be when buying a flat?
Leasehold means that you just have a lease from the freeholder (sometimes called the landlord) to use the home for a number of years. The leases are usually long term often 90 years or 120 years and as high as 999 years but can be short, such as 40 years.
What are the advantages of buying a leasehold property?
The Advantages of a leasehold property are: Typically less expensive. In some cases, less responsibility for repairs and maintenance. Provides a home for people needing short-term accommodation. There is still the possibility of buying the property outright, through enfranchisement, or share of the freehold.
How long should a lease be on a flat?
The majority of residential leases used to be for a term of 99 years, but more recently leases on modern purpose-built flats have been for 125 years or longer. Most leases on ex-local authority flats are also for 125 years. The value of a leasehold flat diminishes as the lease gets shorter.
Is a 90-year lease long enough?
As a general rule of thumb, if the lease is less than 90 years you should almost certainly try to extend it because: Properties with shorter leases are less valuable than ones with long leases (this is particularly true if leases are below 80 years) Properties with shorter leases can be more difficult to sell.
How much does it cost to extend a lease on a flat?
Typical cost to add 90 years to a lease, cost based on Leasehold Advisory Service data. Costs are per flat and can vary dramatically. Based on a £200,000 flat (£200,000 is its value with 999-year lease) with £200 annual ground rent. 1) This includes the valuation fee and freeholder's legal costs.
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