It is more often these days that I meet clients who have short leases on apartments that they have purchased in the past or potentially inherited.
Most banks and building societies are cautious of short leases. A short lease would generally be considered anything less than around 70 years remaining. Because the banks don’t like lending on short leases this can mean that the price is significantly reduced because only cash buyers can then purchase. Plus they know that others will struggle to buy so they make cheeky offers! Leases are far more in focus now than ever.
Most new buildings offer longer leases these days and sometimes even 999 years.
Always check your lease renewal costs before buying. Recently I have come across charges that reach as much as £15,000 for a lease renewals and some unscrupulous freeholders even charge to quote for renewing a lease!
It’s not all doom and gloom though there is an option of lease-enfranchisement in some cases where you and your co-owners have far more control and power to renew leases and control contractors.
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