Supragal Posted January 10, 2007 Share Posted January 10, 2007 I have some questions and wondered if anyone here was a bit of a Guru who might be able to explain a few things about leasehold and leases on land etc... Quote Link to comment Share on other sites More sharing options...
Charlotte Posted January 10, 2007 Share Posted January 10, 2007 Depending on whether it's residential stuff, ask away. Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 10, 2007 Author Share Posted January 10, 2007 Well ok, some of it's residential. I don't understand how leasehold works. Theres 65 years left on our rental flat and people keep saying "ooo it won't be worth as much when you come to sell it" etc etc blah blah. I don't get it. What happens at the end of the leasehold? I mean I know they normally renew it but whats so bad about it being short? What rights does the leaseholder have? Can they decide to claim back all of the flats in the block or something? The other question is about a lease on a boat yard... Likely to know anything about that? Quote Link to comment Share on other sites More sharing options...
Alex Posted January 10, 2007 Share Posted January 10, 2007 As long as the lease is longer than the average mortgage you're fine. You can't get a mortgage on a flat with a shorter lease life....because effectively the property could suddenly become worth a lot less if the lease isn't renewed half way through the mortgage. I think that's right anyway. Quote Link to comment Share on other sites More sharing options...
Charlotte Posted January 10, 2007 Share Posted January 10, 2007 Well ok, some of it's residential. I don't understand how leasehold works. Theres 65 years left on our rental flat and people keep saying "ooo it won't be worth as much when you come to sell it" etc etc blah blah. I don't get it. What happens at the end of the leasehold? I mean I know they normally renew it but whats so bad about it being short? What rights does the leaseholder have? Can they decide to claim back all of the flats in the block or something? The other question is about a lease on a boat yard... Likely to know anything about that? As Alex says as long as the Lease covers the mortgage term + (normally) 30 years you should be fine. 65 years is quite a short term but this won't detract from the actual value of the flat itself. You may be approached by a prospective buyer to extend the Lease. Depending on who your landlord/management company is this may cost you money. Or you could research extending it now so you won't have to do it when you come to sell. If you have a copy of your Lease dig it out and see what it says about extending it, we will be in a similar situation with ours because it was quite short when we bought but I know our landlady will be fine about extending it. When you say Leaseholder I presume you mean Freeholder (person that owns the land). It is in their best interests to continue the Lease anyway so there won't be any issues with 'taking back' the Leasehold land. The way I was taught when I was first learning was:- The Freeholder owns the bricks and mortar, the leaseholder owns their bit inside. Obviously every Lease is written differently in terms of upkeep etc but that is the general rule. I don't know anything about Leases for boats, sorry! Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 10, 2007 Author Share Posted January 10, 2007 Sorry yeah freeholder, I think I am missing something though- what happens at year 0 then? If they dont' want to extend then what happens? Boat yards rather than boats but it's the property that comprises the boat yard that I'm interested in... Quote Link to comment Share on other sites More sharing options...
Charlotte Posted January 10, 2007 Share Posted January 10, 2007 Sorry yeah freeholder, I think I am missing something though- what happens at year 0 then? If they dont' want to extend then what happens? Boat yards rather than boats but it's the property that comprises the boat yard that I'm interested in... The lease would expire and the flat would revert to the landlord (although an assured tenancy would then become a possibility). Quote Link to comment Share on other sites More sharing options...
supraman382 Posted January 10, 2007 Share Posted January 10, 2007 I may be able to help with any queeries on the boat yard, I work for a commercial mortgage broker. Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 10, 2007 Author Share Posted January 10, 2007 The lease would expire and the flat would revert to the landlord (although an assured tenancy would then become a possibility). Nope. Still being dim. Are you saying that at year 0 the flat becomes theirs??? That can't be what you mean. Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 10, 2007 Author Share Posted January 10, 2007 I may be able to help with any queeries on the boat yard, I work for a commercial mortgage broker. Cool I might drop you a pm Quote Link to comment Share on other sites More sharing options...
Charlotte Posted January 10, 2007 Share Posted January 10, 2007 Nope. Still being dim. Are you saying that at year 0 the flat becomes theirs??? That can't be what you mean. You are not being dim, that is what I mean. Link This particular site breaks it down in English, most of the internet sites I use at work aren't very clear. Let me know if you need anything else. Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 10, 2007 Author Share Posted January 10, 2007 OMG that's PANTS!!!! Quote Link to comment Share on other sites More sharing options...
Chewie Posted January 10, 2007 Share Posted January 10, 2007 I was treasurer of the management company that looked after the freehold of the building we all bought a flat in. When somebody was selling up and this sort of problem came up, we just spoke to our solicitor who extended the lease. In theory it could hit zero but in practice it never does. The landlord is probably long dead or the management company has sold on the freehold so to get interest, they extend the terms. Or am I talking bullsh1t. Quote Link to comment Share on other sites More sharing options...
Charlotte Posted January 10, 2007 Share Posted January 10, 2007 In theory it could hit zero but in practice it never does. The landlord is probably long dead or the management company has sold on the freehold so to get interest, they extend the terms. Or am I talking bullsh1t. You're right, that happens in most cases. Plus there are housing laws (I think the 1989 housing act) which allows leaseholders certains rights to extend their lease for at least 99 years at the end of a term. Quote Link to comment Share on other sites More sharing options...
Chewie Posted January 10, 2007 Share Posted January 10, 2007 Unless there's a motorway, nuclear powerstation, paedophile day care centre next door, this being the UK, you'll find the value of the property will just keep going north. Remember it's location, location, location. Quote Link to comment Share on other sites More sharing options...
Darren Posted January 10, 2007 Share Posted January 10, 2007 Plus there are housing laws (I think the 1989 housing act) which allows leaseholders certains rights to extend their lease for at least 99 years at the end of a term. Thats what I thought the lease has to be extended on same terms. The property never goes back to the freeholder anymore. Quote Link to comment Share on other sites More sharing options...
Charlotte Posted January 10, 2007 Share Posted January 10, 2007 Thats what I thought the lease has to be extended on same terms. The property never goes back to the freeholder anymore. I've never actually been in a situation where a lease was that short. Like I've said previously the mortgagees have to protect their interests so the term has to be at least 50-60 years, I've never seen one under that length. Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 11, 2007 Author Share Posted January 11, 2007 An extension was offered, 28k for 20 years or something. Na. Quote Link to comment Share on other sites More sharing options...
tbourner Posted January 11, 2007 Share Posted January 11, 2007 Bleedin eck, so buying a flat means buying the rights to live there for X years and not actually owning anything!!!! Assuming you'll live there forever or if you get a 999 year lease it's OK, but if you want to sell on and move up and your lease has dropped to 60 you're stuffed basically!!! 28k for 20 years more is harsh as well. Quote Link to comment Share on other sites More sharing options...
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