I've been looking at some flats, and one has 66 years and the other has 70 years left on their lease. One site says that anything below 80 years is a problem, and other sites say anything less than 60 years.
2006-07-02 10:10:30 · 6 answers · asked by nemesis 5 in Business & Finance ➔ Renting & Real Estate
It rather depends how long you intend to live in the property before moving on.
Some mortgage lenders insist that the lease extend for at least 30 years after the mortgage is paid off. Assuming a 25 year mortgage this means that if the lease has less than 55 years to run you may not be able to get a mortgage.
This is not a problem for either of the properties you are considering. However if you were to purchase the one with 66 years left on the lease and lived there over 10 years selling the property may become a problem.
2006-07-02 10:32:48 · answer #1 · answered by John H 6 · 2⤊ 0⤋
Neither of these would be a problem until it came to reselling but only if you were planning on staying there for twenty years! However, renewal of a lease is usually only a couple of thousand so it would be worth your while finding out beforehand who the freeholders are and enquiring as to the cost of a new lease. Find out if the sellers will deduct this from the cost of the flat. It's a valid thing to ask as a lot of buyers will probably be worrying about the same thing. Also bear in mind that the law protects leaseholders meaning that an unscrupulous freeholder COULD NOT charge you an unreasonable amount for a new lease.
2006-07-03 12:57:34 · answer #2 · answered by Bapboy 4 · 0⤊ 0⤋
Be very careful with any lease, I have heard situations where Freeholders have asked for an extortionate amount to extend a lease. How long do you intend to live there? With any less than 80 years left on the lease you need to be careful.
2006-07-03 13:09:37 · answer #3 · answered by mortgage4u 1 · 0⤊ 0⤋
A lease should be 99 years or more, anything less than 50 years you may have trouble selling it on.
2006-07-04 09:39:09 · answer #4 · answered by MSMORTGAGE 3 · 0⤊ 0⤋
60 years should be ok as its well beond the morgage length and you might look in to buying the lease outright it might be worth it to you as they dont cost much with that length left on them
2006-07-02 17:27:44 · answer #5 · answered by Lindodo 2 · 0⤊ 0⤋
minimum should be 99-120 years.....it gives u time.
2006-07-02 18:30:21 · answer #6 · answered by rocadapo 1 · 0⤊ 0⤋