Flat lease terms – Help!Make Text Bigger
I’m about to step onto the BTL ladder and would like some advice…
I’m buying a 2 bed flat which was being sold with a 99yr lease. We have since been informed that the lease term is in fact only 64 yrs! The vendor initially said he couldn’t extend the lease due to not owning the flat for a minimum of 2yrs and agreed to drop the price by what he claims the cost would be to extend to 99yrs (£1750 inc Solictr’s fees). He now says he can renew the lease to 100 yrs after all.
My plan is to keep the flat for a maximum of 20yrs as a pension fund, then sell. This would then leave a term of 80yrs which after some research appears to be the cut off for lease renewal which I don’t want to get involved in!
The agreed price is £82000, with a ground rent of £900 pa.
My questions are:-
- In your opinion, is it a good idea to buy a flat with only 100yrs lease or should I be looking for a longer term?
- Looking at various leasehold calculators, the cost to extend seems to be more in the region of £15000 – £18000, not £1750! Can this be correct??
- Is there anyway I can find out myself, a) Who the leasehold company is. b) How much the cost of extending the term would be. c) Get a copy of the extension contract/invoice if the extension is completed.
I’m now doubtful as to the integrity of the vendor as he seems to change his mind a lot on a lot of things!
I have advised the estate agent that I would like a lease term of 120yrs minimum and am waiting for a reply….
Any advice anyone can offer would be great fully received as I’m now feeling a little unsure about the whole situation.
Many thanks and great website!
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