Are there any distinct disadvantages to buying a leasehold property rather than a freehold property?

Question

currently in freehold property and looking to move into a leasehold(57 years on lease).Do my mortgage circumstances change and what should i be weary of?

Answer 1

It's cheaper, but the property is not yours for keeps.

Answer 2

You wouldn't normally buy the freehold to your property. The freeholder is obliged to grant an extension up to 99 years so negotiate that before buying the property. In certain circumstanes, a lender will not give a mortagage with onlly 57 years on the lease so check with your bank before doing anything.

Answer 3

Leaseholds are crap. You can get really stiched up on maintence costs and landlord costs. Also solicitors charge more to dela with them and at only 57 years left on Lease most mortgage companies will want you to extend the Lease before you can buy. I am a conveyancing lawyer and can say in my opinion you should never buy a leasehold if you can avoid it. Almost all problems with properties are due to them being Leasehold.

Answer 4

Stick witht the leasehold ! You wont own the property if you have a leasehold, where as you do if you have the freehold !

Answer 5

when the lease expires you have to reapply for a new one which is not guarenteed you wil get it

also as the number of years left on the lease decreases the amount you can sell on for (when you want to move on) will decrease and it will become harder to sell

if looking at leasehold properties i would personally try to get one with much closer to 100 years left to run

Answer 6

You never own the plot and have to pay ground-rent; with only 57 years to run, may be an inheritance issue later on

Answer 7

Watch out for maintenance costs - especially in flats etc. I know of an instance where our landlord got caught out because the roof needed replacing.