Internet1 min ago
leasehold property
3 Answers
i have made an offer on a leasehold property and it has been accepted.
will i make any money on a leasehold property?
will i make any money on a leasehold property?
Answers
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Well one of the things you need to know is how long the lease has left! If it is 99 years or 80 years etc. then you will be able to sell it in the future and if property prices have gone up, which they always do (apart from the odd temporary crash here and there) then you will benefit from that increase by your equity in the property increasing, which you could realise when you came to sell it. If you are buying somewhere that only has five years left on the lease then that is a different matter, although you could rent it out for more than the mortgage and make money that way.
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The downside is that you are really only 'renting' the property from a freeholder for a set period of time - often 90 years etc. After that period ownership goes back to the freeholder. Most flats are leasehold and will have conditions attached by the landlord such as maintenance contributions. See here: http://www.themovechannel.com/howto/find/freehold-or-leasehold.asp | |
| Submitted By: Octavius | Date Submitted: Thurs 25/08/05 12:31 |
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