How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask propertylawyer Your Own Question

propertylawyer
propertylawyer, Solicitor
Category: Law
Satisfied Customers: 237
Experience:  Property Solicitor with expertise in commercial and residential property transactions.
94563951
Type Your Law Question Here...
propertylawyer is online now

We are selling our house and it is early days at the moment

Resolved Question:

We are selling our house and it is early days at the moment we have seen a property that we would consider buying but it is leasehold is it a risk to buy when it is leasehold rather than freehold which we are in a property at the moment could you tell me what the disadvantages are and advantages the estate agent that the house is with says there is no ground rent on this property still need answers not sure in my own mind
Submitted: 4 months ago.
Category: Law
Expert:  propertylawyer replied 4 months ago.

Hi

Thanks for your question.

There are differences between leasehold and freehold.

1. The lease will contain covenants, I.e obligations with which you must comply. These range from repair, payment of service charges, regulations as to use, whether you need consent to alter the premises.

2. It is a depreciating asset. As the term expires it effects value. Do not allow the term to drop to 80 years or below, it becomes considerably more expensive to extend the term. If the term drops to around 70-75 years or below it is effectively unmortgageable, meaning a buyer's lender will not agree to finance the purchase.

A tenant becomes a qualifying tenant after 2 years ownership and can then rely on the statutory process to extend the lease, generally an additional 90 years but subject to payment of a premium.

I hope this helps.

Any questions or queries? Happy to assist further.

Please accept /positive rate otherwise the website will not pay me for answering your question.

Customer: replied 4 months ago.
The lease is from 1966 for 999 years
Expert:  propertylawyer replied 4 months ago.

Then the points stated on lease extension obviously do not apply.

However, you will be controlled by the terms of the lease.

The covenants in a virtual freehold lease are generally less restrictive than a standard 99/125 year lease.

Customer: replied 4 months ago.
would you in your opinion not consider buying a house that has leasehold with these restrictions
Expert:  propertylawyer replied 4 months ago.

One would need to see the lease and explain the implications of the covenants to you. It is down to you to form your opinion after being advised of the covenants/implications.

The covenants in a virtual freehold lease of a house should be very minimal.

Ask the agent for a copy of the lease. Alternatively you can buy it for between £3 and £6 from the Land Registry.

propertylawyer, Solicitor
Category: Law
Satisfied Customers: 237
Experience: Property Solicitor with expertise in commercial and residential property transactions.
propertylawyer and 2 other Law Specialists are ready to help you
Customer: replied 4 months ago.
Thank you will have to look in to this

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice