leasehold advisory service
When you’re looking to buy a property with a leasehold, it’s important to check that you can afford the monthly fees and ground rent payments. These can be high and may make it difficult to get a mortgage or sell the property on.
It’s also essential to consider how many years are left on the Leasehold Service Startup. If it’s less than 80 years, it can be more difficult to get a mortgage and it could seriously affect your property’s value. If you want to extend the lease, it’s worth using an online calculator to estimate the cost. You can also ask your freeholder if they can help.
You should always seek legal advice before extending your lease or buying the freehold to your property. This is particularly true if you have any concerns about the terms of your lease or any other issues that you think may arise.
leasehold advisory service online calculator
The Leasehold Advisory Service has an online calculator that can help you to work out how much it will cost to extend your lease or buy the freehold to your flat. It also has other helpful information and guides that can be useful, including video, podcasts and downloadable leaflets.
Before you apply for an extension, it’s important to have a financial plan in place as costs can increase significantly. You’ll also need to make a one-off payment (known as a premium) that will cover the costs of your application and any changes in the lease.
Extending your lease can be a complicated process but it’s not impossible to do. 100% of leaseholders have a statutory right to do so through a formal process.
It’s also vital to know the amount of ground rent and service charges you’ll be expected to pay. Depending on the lease, these fees can increase significantly over time and you could find yourself facing financial difficulties if you don’t manage to meet them.
When you’re purchasing a leasehold property, it’s also worth considering whether you will need to take out buildings insurance and whether the freeholder is able to raise the annual service charge from year to year. These costs aren’t included in your monthly mortgage payments but they can still add up to a substantial sum.
If you do need to pay these, the leasehold advisory service has a guide to how much they can increase your monthly mortgage payments.
To make any structural changes to your flat, such as removing internal walls and building an extension, you will need to get the permission of your freeholder. This is often a complex process and requires a lot of negotiation.
You can also ask your freeholder to arrange repairs on your property under the terms of your lease. However, it’s important to be aware that this is a statutory requirement and not something you can simply do yourself without their permission.