how_supra Posted July 14, 2005 Share Posted July 14, 2005 Right just looking at buying my first property. All very grown up I understand that flats / appartments are usually Leasehold, and whilst I just about understand the principle, I'm wondering if there are any folks on here who have had any experience with Leasehold and wish to share them with me Specifically: What to look out for? Piece of mind that there is no difference technically then freehold properties Quote Link to comment Share on other sites More sharing options...
kosmic Posted July 14, 2005 Share Posted July 14, 2005 Basic things to look out for are material construction i.e. concrete/brick. Remaining lease. Ground Rent and Service Charges....can be extortionately high in some properties. Quote Link to comment Share on other sites More sharing options...
how_supra Posted July 14, 2005 Author Share Posted July 14, 2005 Basic things to look out for are material construction i.e. concrete/brick. Remaining lease. Ground Rent and Service Charges....can be extortionately high in some properties. Yeah I will check that all out. I will probably ask some of the other people in the flats and see what they say about the Landlord etc. I've had a few people say that they would never touch a leasehold property. But where I live - which is just west of London, the only property I can afford to buy is a flat or appartment and these are usually leasehold. I could just wait until I'm earning enough to buy a freehold property, but I have already thrown 11k down the drain in rent, over the past two years. The cost of buying a property and renting a property in my area is the same as well - as you would know. Unless I stick in my current situation which is shared living, but to be honest I can't be dealing with living with complete idiots for much longer! I've done it since I was 18. I'm now 24. The worse part is that the drive can only take 2 cars, and 3 people have cars, two of whom have two cars, so rarely I can park my car on my drive Quote Link to comment Share on other sites More sharing options...
Suprasteve Posted July 14, 2005 Share Posted July 14, 2005 most mortgage lenders want to see at least 25 years remaining after the mortgage term has finished. i.e. if you took out a mortgage for 25 years the lease must be at least 50 years at the beginning. Saying that your solicitor would probably advise going for a property with a longer lease more like 60 years + its difficult getting mortgages for flats if:- 1) they are above commercial property especially fast food places. 2) try and stay clear of ex-local authority flats 3) avoid properties with more than 4 storeys high Ask if building insurance is covered in ground rent and whether the maintanance/service charge is due to increase or any pending works to be carried out in the near future (also your solicitor should find this out anyways). Legal fees can be higher than for a freehold property. As you've probably guessed i'm an independent mortgage advisor, if you want any quotes or advise feel free to ask. Quote Link to comment Share on other sites More sharing options...
how_supra Posted July 14, 2005 Author Share Posted July 14, 2005 most mortgage lenders want to see at least 25 years remaining after the mortgage term has finished. i.e. if you took out a mortgage for 25 years the lease must be at least 50 years at the beginning. Saying that your solicitor would probably advise going for a property with a longer lease more like 60 years + its difficult getting mortgages for flats if:- 1) they are above commercial property especially fast food places. 2) try and stay clear of ex-local authority flats 3) avoid properties with more than 4 storeys high Ask if building insurance is covered in ground rent and whether the maintanance/service charge is due to increase or any pending works to be carried out in the near future (also your solicitor should find this out anyways). Legal fees can be higher than for a freehold property. As you've probably guessed i'm an independent mortgage advisor, if you want any quotes or advise feel free to ask. That's good to know. I may take you up on that offer. I went to HSBC last week and they have approved me for a Mortgage, but they didn't give me any constraints on property type etc. I'm going here on saturday to have a look around. I'm also having a look at a similar property in Slough as well. Quote Link to comment Share on other sites More sharing options...
Suprasteve Posted July 14, 2005 Share Posted July 14, 2005 looks very nice. Newish purpose built, shouldn't have any probs getting a mortgage on that and for that price no stamp duty either ! - result I'll PM you with my e-mail address. Quote Link to comment Share on other sites More sharing options...
SimonR Posted July 14, 2005 Share Posted July 14, 2005 Everything that Suprasteve said plus: 1/ Make sure that you get a long lease. No less than 80 years and preferably more. Otherwise you will get stuck with the cost of extending it when you want to resell. In my experience, you won't be able to avoid this because lenders won't mortgage on properties with short leases. 2/ A Flying Freehold will cause legal probs - avoid. This is the same whether you are freehold or leasehold. This is rare, but I found out the hard way. 3/ Check out the lease for any funny clauses - not allowed to sub-let etc. These may not matter to you now but could in future. That's from my experience as a landlord. Quote Link to comment Share on other sites More sharing options...
how_supra Posted July 14, 2005 Author Share Posted July 14, 2005 Everything that Suprasteve said plus: 1/ Make sure that you get a long lease. No less than 80 years and preferably more. Otherwise you will get stuck with the cost of extending it when you want to resell. In my experience, you won't be able to avoid this because lenders won't mortgage on properties with short leases. 2/ A Flying Freehold will cause legal probs - avoid. This is the same whether you are freehold or leasehold. This is rare, but I found out the hard way. 3/ Check out the lease for any funny clauses - not allowed to sub-let etc. These may not matter to you now but could in future. That's from my experience as a landlord. That's interesting thanks. I'm making notes on everything - thanks guys Quote Link to comment Share on other sites More sharing options...
SimonR Posted July 14, 2005 Share Posted July 14, 2005 Just looked at that property. Be aware that a lot of places were thrown up in the late eighties to take advantage of the house price boom. I lived in one for a while and the walls may as well have been made of cardboard. I could hear everything (and I mean everything) that the neighbours got up to. If noise matters to you (it doesn't to everyone) then view the property in the evening and listen out for TV noises from other flats etc. If the seller has their TV on ask them to turn it off. Don't be afraid of upsetting people with awkward questions. Quote Link to comment Share on other sites More sharing options...
how_supra Posted July 14, 2005 Author Share Posted July 14, 2005 Just looked at that property. Be aware that a lot of places were thrown up in the late eighties to take advantage of the house price boom. I lived in one for a while and the walls may as well have been made of cardboard. I could hear everything (and I mean everything) that the neighbours got up to. If noise matters to you (it doesn't to everyone) then view the property in the evening and listen out for TV noises from other flats etc. If the seller has their TV on ask them to turn it off. Don't be afraid of upsetting people with awkward questions. Absolutely right as well. Noise it not too important as I've been living in shared accomodation for many years. The reasons why I want to move are: 1)My own space (including parking) a)to only have my mess to clear up b)to be able to get in the bathroom when I want c)to leave my stuff whereever I want 2)To stop throwing away money each month on rent There are other reasons, but they are the main ones Quote Link to comment Share on other sites More sharing options...
DaveRex Posted July 14, 2005 Share Posted July 14, 2005 I'm in the process of buying as leasehold property in Holtspur, Beaconsfield as a development project Its the first leasehold I've bought, all I'd say is that you just need to go through the terms with your solcititor. The only issue I am having is planned works (which the seller is paying for) and a tree that is near to the house which I might need to get rid of, its just little things like that you need to sort out who has responsibilty for what I don't understand the comment above to avoid ex local authority buildings but anyway good luck ! Quote Link to comment Share on other sites More sharing options...
how_supra Posted July 14, 2005 Author Share Posted July 14, 2005 I'm in the process of buying as leasehold property in Holtspur, Beaconsfield as a development project I hate that roundabout in Holtspur - the one with the harvester pub on it. I always think someone is going to kill me there for some reason :thumbdown Quote Link to comment Share on other sites More sharing options...
Suprasteve Posted July 14, 2005 Share Posted July 14, 2005 I don't understand the comment above to avoid ex local authority buildings but anyway good luck ! this is purely to do with the lenders as most don't lend on ex-local authority flats but this is discressionary and normally up to the surveyor. Problem is you will most likely need to pay a survey fee upfront which is non refundable - don't want you wasting your money. Also if the majority of flats in the block and surrounding are privately owned then it my not be an issue. For the record I personally have nothing against ex-local authority property! Quote Link to comment Share on other sites More sharing options...
SimonR Posted July 14, 2005 Share Posted July 14, 2005 If you go for ex-council, be aware that you have to check the neighbours first. This isn't an issue of prejudice, if you stuck with some b******s next door it could make the property very difficult to sell. Remember, these days you have to complete a Sellers Pack when selling, part of which asks whether you have had problems with the neighbours. If you falsely claim that you didn’t you can be sued by the buyer. Does anyone remember this happening to that guy up north? I can’t remember the exact details but I seem to remember that he had to pay back something like £50,000 to the people he sold the house to. Quote Link to comment Share on other sites More sharing options...
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