The property I'm looking at has been on the market for 9-12months and the lease cannot been extended, it just runs out. I really love it, but am unsure it is a good investment. It may not have sold yet because of this or because it is a flat in a rural location. What do you think
2007-09-27 00:50:32 · 8 answers · asked by Squiz 3 in Business & Finance ➔ Renting & Real Estate
I wouldnt I mean sure 90 years is a long time but not when you think say you live in it for 40 years and then your kids want to sell it. It only have 50 years on the lease. Its just a lot of money for something that you eventually cant keep.
2007-09-27 00:54:55 · answer #1 · answered by sarah W 4 · 0⤊ 0⤋
You need to find out if you can purchase the lease. You can find out who owns it by going to the land registry site and doing a search on the property for £3. Your after the title document. Alternatively ask the seller who they pay ground rent to. Once you know this you can ask the land owner what the chances of a selling you the freehold are (price dependent), or alternatively extending the current lease(but not in your case)
I don't know the cost of buying the lease, but I think there's some regulation on it based on how long it's been occupied - but thay may be incorrect. I know someone who bought their for a couple of thosand and someone else who paid several tens!?
Here's why I wouldn't buy a leasehold - and would make it a condition of the purchase to get the freehold....
A plot of land would cost circa £100,000 where I live in the midlands. The house would cost about another £100,000 to build depneding on what spec you went for. You could then sell the house for about £230,000+. Notice what's missing when you have a leasehold. You only own the bricks and mortar, not the ground. So really the house is only worth about £100,000. Not the £200,000+ it will be up for sale for!
Would you pay full price for a car that someone still had on HP and had to be returned at the end of the year!?
Q) Does anyone know what happens at the end of the lease? Could the land owner ask you to remove your property as he wants to build a shopping centre?
2007-09-27 22:41:08 · answer #2 · answered by simon_heath 2 · 0⤊ 0⤋
I wouldn't touch it with a barge pole - if you try and sell it in 10-15 years then the buyer won't even get a mortgage for it. There may well be very good reasons for the refusal to extend the lease - only the owner of the property can give or refuse this kind of permission. This is probably why it has been on the market for so long. In this kind of situation, you are not buying the property - you are long-term renting it, and if you wish to sell after (think selling the lease not the property) you are going to have to sell at a huge discount.
2007-09-27 01:02:44 · answer #3 · answered by sicoll007 4 · 2⤊ 0⤋
Depends if you can extend the lease and how much that would be. Think about it, if you are in doubt about buying it now is anyone going to buy it off you when you've lived in it for a few years!
2007-09-28 02:01:16 · answer #4 · answered by lizzybee 3 · 0⤊ 0⤋
Without being able to extend a lease this would not be a good investment
2007-09-27 00:59:40 · answer #5 · answered by stef 4 · 0⤊ 0⤋
Whoooa, carry on there. i understand you have various cohesion (God bless you for that) yet, sis did make a number of those alternatives in her existence, ok. different than for her paying for sources beforehand of marriage, that's a extensive mistake for any woman, whilst she left that abusive creep, she knew that she nevertheless had her call on sources and her call on a mortage. yet, she skipped over all that, gave him all, and waited lots lots later till she met somebody else, have been given married and wished to purchase yet another domicile. So, someplace down the line, sis desires to settle for some duty for this mess. even nevertheless, all isn't lost. Sis can burn this abusive creep's in the back of via hiring an lawyer who will report a declare to stress the sale of the domicile. for the reason that sis is 50% proprietor, she gets some funds, pay off the non-public loan and her call would be sparkling and the bastard would be homeless. that's maximum appropriate that the finished family contributors will love. decision #2 isn't as superb. It includes having sis do a supply up declare deed to furnish the bastard one hundred% possession. Then she has to wish that he will refinance or she'll would desire to return up with eighty,000 to sparkling the non-public loan. So, have sis talk with an lawyer. interior the intervening time, you will desire to submit to in concepts that she screwed up.
2016-12-28 05:07:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you like it and the place is marketable then 'Yes'.
A lot can happen to the market over the next 90 years so enjoy it now if u want to........
2007-09-27 00:58:45 · answer #7 · answered by JJ 2 · 0⤊ 0⤋
I am sure you could buy an extension. Otherwise it's not a great investment.
2007-09-27 00:55:20 · answer #8 · answered by Anonymous · 0⤊ 0⤋