buying a property with an 80 year lease left

[pinkfluffo]

We are looking at buying a property which has an 80 year lease left on it. After reading a few things about it it seems to be a bit of a grey area buying a property with a lease of 80 years or less.
Does anyone have any advice regarding this. If it is a grey area then what would be a good amount to knock off the asking price (on top of what would normally be negotiated off the asking price). Its a 2 bed flat up for �120995. Are we better off staying well clear? and why dont current occupiers extend the lease before it gets to 80 years? wouldnt this make sense. thanks for any help.

[pinkfluffo]

Anyone? Sorry to be impatient.

[Velvetee]

I would avoid buying a property with a short lease. If you keep it for 25 years, you will find when you come to sell it, you will have difficulty as few people will want to buy a property with only 55 years left.

If you do want to buy it, then make enquiries as to how much it will cost to extend the lease.

[pinkfluffo]

Could i expect to ask for a drop on the price based on the lease being a short one?

[Velvetee]

I'm not sure, as at the moment, the lease is not drastically low, most start off at 99 years. The best person to ask, would be your Conveyancer.

When I purchased my flat about 14 years ago, the lease was 86 years. The people on the ground floor owned the Freehold, but were moving, so offered it for sale to myself and the other 2 owners in the block, so we now each have a share of the freehold.

How many flats are there in the building and who owns the Freehold at the moment?

[pinkfluffo]

Thanks for your help. The block has i would say about 20 flats in it and im assuming the freeholder would own all of them. The freeholder is a property company in the town a few minutes away. Ive heard that below 80 years "marriage value" comes into the price when extending and because you have to be there 2 years before you can extend then im looking at extending at 78/77 years. Im so confused as this flat is the only one about at the moment which we can afford.

[jenniprice]

Most mortgage lenders don't lend if it is lower than 85 years so have you checked this out?
Alot of flats are now getting together and extending leases-now to 999 years so not gona run out in our lifetimes!

You should ask for a reduction in price as lease is low, and could buy a flat that has more years on it.

However if I were you I'd stay well clear of it, as like velvetee said, many people will be put off by it, after you've lived there few years. So when you coem to sell on it will be hard to.

Also most people aren't daft, and maybe the owners have tried to extend lease, but failed..

[redcrx]

how do you know its not already priced low to accomodate the shorter lease term?

is it the freeholder selling it? if so, why not ask for a longer lease?

[pinkfluffo]

Thankyou for everyones help and advice, much appreciated.
Sorry to be a complete nuisance but have just found out the lease isnt 80 years afterall, theres 961 years left!! The guy said it was 990 year lease in 1980 so theres loads left to run. Not sure where he got 80 from but am very pleased either way.
Thanks again.