people have previously written on this site that buying a property with leasehold may not be a good idea? but if the lease is for more than 100 years does this make any difference?(improve the scenario)? moreover how much might it cost for changing it to a freehold ( for a detached property with 4 bedrooms in Birmingham)?what other questions should I be asking before/and if I make an offer?
2006-11-25 05:56:33 · 5 answers · asked by mustafa_sajeel 1 in Business & Finance ➔ Renting & Real Estate
Leasehold houses don't start losing value unless the lease has less than 30 or 40 years left to run, but mortgage companies may get worried if you want (say) a 25-year mortgage on a house with 50 years left to run on the lease, because the value may start to drop before the mortgage is fully repaid.
You can buy the freehold or extend the lease (compulsorily, once you have owned for a couple of years), but the price rises steeply as the end of the lease approaches.
If you only aim to own the 100+ year house for a few years, you should be OK, but eventually a stage will be reached when its value starts to drop.
2006-11-25 10:54:42 · answer #1 · answered by andrew f 4 · 1⤊ 0⤋
that's a very bad idea. When you purchase a leasehold estate you do NOT get complete rights to the property. This means you may not be able to sell it, make any changes to it (including repairs, painting, etc.), and be stuck with a LOT of problems. Changing it to a freehold estate in fee simple absolute could cost you a bloody fortune. You will have to pay court costs among other things. Also, you MUST make certain that you are purchasing from the freeholder NOT the leaseholder. Also, you can't use a Leasehold as collateral for a loan....so if you wanted to buy another property you'd have to have some other collateral.
2006-11-25 14:08:41 · answer #2 · answered by cyanne2ak 7 · 0⤊ 1⤋
It's very unusual for a house to be leasehold in England, it's usually just flats.
Leases with below 70 or 80 years to run are considered problematic, although it's meant to be easier to extend these days.
Could you buy the freehold?
2006-11-25 14:37:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes having a lease for over a 100 years is a good thing. This will make it easier to sell on. Also ask about land rent. How much is it? How often is it payable. Insurance of the building. Does this have to be done through the vendor. Are there any limitations on the building? (do you have to ask permission to have pets? Can you make alterations with out permission)
Well can not think of any thing else. But obviously take heed of what the lady said above me.
2006-11-25 14:10:10 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There is benefits to a leaehold too. The owner has an obligation to maintain the building etc. Check the terms of the lease.
2006-11-25 15:41:40 · answer #5 · answered by Anonymous · 0⤊ 0⤋