Why would anyone buy a leasehold property?

After separating or divorce, others want to live in a smaller space. This is the same for older people, who want to avoid the extra hassles and costs of owning a house that they’re entirely responsible for. It’s also common to own leasehold properties for those working in city centres to save on commuting times.

Is it a bad idea to buy a leasehold property?

If you’ve fallen in love with a property that happens to be leasehold, there’s no reason you shouldn’t go ahead and purchase it. Leases themselves aren’t an issue – it’s bad leases that are the issue. Terms in your lease mean if you’re having any issues, for example with noisy neighbours, this can be dealt with.

Is it harder to sell a leasehold property?

Selling a leasehold property can be a bit more complicated than selling a freehold property. However, usually you will only need to collect more pieces of paperwork and do some more planning. If you’re properly prepared, selling a leasehold property can be quite straightforward.

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Can you renovate a leasehold property?

If you own a leasehold property, you will usually be free to do more minor works – such as painting, decorating, kitchen and bathroom refits – as you see fit. … The freeholder will want to know is that any changes or renovations you intend to make will improve the property and not significantly impact its future value.

Is a 999 year lease as good as freehold?

Newly-created leases can be anything from 99 or 125 years to 999 years. A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below). However, shorter leases become problematic sooner than you may think.

How many years should be left on a leasehold?

Leasehold is usually granted for at least 21 years and can last as long as 999 years. Renting residential property is usually on a short-term basis through a contract called an assured shorthold tenancy (AST).

How long does a leasehold property take to sell?

A leasehold purchase can take at least eight to 10 weeks, but a number of things could delay that. A chain-free sale shouldn’t take longer than three months but if you are in a chain and if there are any complications with the lease and it is possible to take as long as six months.

Who is responsible for the roof in a leasehold flat?

Your lease will set out who is responsible for carrying out repairs to your home, the building and to any shared facilities. The freeholder is usually responsible for arranging repairs to: the building’s structure, including the roof and guttering. shared parts of the building, such as lifts and communal stairways.

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What rights do you have with a leasehold property?

A leasehold is a long tenancy – when you buy a leasehold flat you have the right to occupy and use the flat for a period. This time is the ‘term’ of the lease and can be from 99 years up to 999 years. Normally, you own everything within the four walls of the flat.

Can I change the bathroom in my leasehold flat?

Most leases require the landlords permission to carry out alterations and improvements (e.g new kitchen or bathroom). Failure to do so could lead to complications and delays if you decide to sell.

Can you knock down walls in a leasehold flat?

Knocking down walls

If you’re unsure, ask the freeholder – it’s usually a safe option. In theory, the freeholder/management company has the right to refuse the work – but reasonable requests are often permitted, especially if they can be approved by a structural engineer beforehand.

Can I convert leasehold to freehold?

The process of converting any leasehold to freehold is known as enfranchisement and, in common with other types of enfranchisement, such as collective enfranchisement (click to find out more), how much you’ll pay to convert depends on the result of a RICS freehold valuation, which you have to pay for.

What is a good lease length?

As a general rule of thumb, if the lease is less than 90 years you should almost certainly try to extend it because: Properties with shorter leases are less valuable than ones with long leases (this is particularly true if leases are below 80 years) … Properties with shorter leases can be more difficult to sell.

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Can I sell a leasehold property?

Selling a leasehold property is just like selling any other property. There’s a little more paperwork to hand over, but your solicitor or conveyancer will know how to deal with it. … Luckily, there are two main ways to make your sale easy and successful if you have a short lease: extend the lease, or buy the freehold.