Leasehold properties?

Former Member

Hi,

We have been saving like mad trying to get about 4-5 k together to hopefully get on a shared ownership deal.

This seems to be the only way we will get on the ladder and we hope to be able to do this somethime next year if all goes to plan!

Ive got a big concern now though, I have come to terms with the fact that we would have to pay a service charge forever but this term "leasehold" is somewhat confusing, to my knowledge i thought being in a lease would of meant that there are certain regulations in place such as no bbqs on balconys etc.

Someone told me now that a leasehold is a property you will never own outright.

Lets say for example the lease is for 200 years, at the end of that 200 years the property goes back to the ultimate landlord and my great great great granchild will be on the street?

Is that right or have i been misinformed?

Thanks

Betty :wave:

Former Member

In a sense, yes,

This link should hopefully help.
http://www.ludlowthompson.com/property_advice/Whats_the_difference_between_freehold_and_leasehold/article.htm?id=16

Former Member

Wow, that seems ridiculous, Im not doing that... Id rather save more and get a freehold, what is the point of "investing" in a property and then having to give it back after 100 years???

Thanks for the link

Former Member

yes, but with flats etc, theres usually no way round it.

Its better to buy freehold if you can

Former Member

Thats just really me, my way to get on the ladder has been destroyed :crying:

I cant compute paying so much money on a flat and finally paying it off in 25 years time and then knowing that your stay is limited and in 70 or 200 years the landlord will take it back?

I want to leave a place for my Son so I'll struggle on in the hope that maybe the market will pick up and a 95% mortgage scheme will develop in the future???

Fingers crossed.

:thumb:

Former Member

there is very little chance that a flat you buy now, youll want forever. You just sell it on

Former Member

What SSC said. Chances are you'll move before the leasehold is up.

Former Member

Is it a flat? leasehold is quite common with flats. See also http://england.shelter.org.uk/get_advice/renting_and_leasehold/leaseholders_rights/buying_the_freehold

Former Member

So i guess if i make sure the lease is a long lease then i can always sell the part i do own, for example 25% in 7 years time.

Thats another good option, thanks you two

Youve made it sound attractive again, i could sell my percentage and use that chunk of money to get another mortgage on a place i really like in the right area and that is the right size....