Leasehold
 

Hello folks - I notice when I look at properties online, in England, that some, especially flats, are leasehold.
The one I'm currently looking at is a 99yr leasehold with an annual ground rent of 75 GBP plus a monthly service charge, currently at 60 GBP.
Is this anything I shoud be aware of when considering buying leasehold?
Plan B is to buy a small house & garden. Then the 60 pounds monthly could go towards upkeep. Hopefully, as the houses in the area I'm looking at are brick with tiled roofs, there shouldn't be too much upkeep.
Would appreciate any input.
Thanks

Re: Leasehold
 

Try to stay away from leasehold flats if you can afford a house. There are so many problems with having a lease compared to owning a flat! You can research problems by googling leasehold problems.

Re: Leasehold
 

Have a look at this website:

http://www.lease-advice.org/default2.asp

Lots of advice re leaseholds and pitfalls

Personally I too would avoid a leasehold if possible.

Hope that helps.

Re: Leasehold
 

trying to get a mortgage on a leasehold with less than 60 years is tough...so add the time you think you might stay in that place (eg 10 years) to the 60 and don't buy one with less than that on the lease.


Saying that, leasehold laws have changed hugely in recent years and you now have plenty of rights to buy in and become a freeholder- shared with other leases in the property. The smaller the number of properties sharing the freehold the easier it is- then you have fewer other joint freeholders to agree management activities with!

Re: Leasehold
 

I think leasehold flats work well for many people. In this example there is a £60 a month service charge.. a moderate, known budget item.. versus owning a house where you unfortunately have absolutely no idea what unexpected repair & deferred maintenance bombshells may unexpectedly arise.

Re: Leasehold
 

Thanks very much for the input - greatly appreciated.

Re: Leasehold
 

It does depend on the lease.

I had a lease on a flat in a house divided into 2.
We were responsible for all outgoings. We paid the ground rent to meet the terms of the leasehold. Roof leaked- we and other flat had to replace it. Windows were falling apart (after a few years)...we also had to pay out.

And a friend of mine had a lease flat in a block of 35- she got a bill with a year's notice, of intention to replace the fire escapes. Each flat owner had to pay 3500...the service charge tends to pay for 'standard' maintenance like cleaning common areas, lighting common areas, but not for 'extraordinary' bills- much like a freehold home.

So all in all, leaseholds are trickier if you are trying to budget- but that's why they are cheaper in the first place.