The building lease and you.November 11, 2020
When you are looking at buying a flat, apartment, maisonette or shared ownership property you will probably come across the subject of a lease. A lease is like a long term Rental agreement. They are needed in instances where the property is part of a larger block of flats or there are certain terms attached to the place you are looking to purchase. Simply put, you can’t own the whole of the building that the apartments are in so you own a lease for your individual piece. The other situation for leasing is where you have a shared ownership property that you don’t own outright or there is an element of the property like a bit of land, or in some rather messy cases a portion of the house itself like an apartment or “granny flat”.
The ultimate issues of leasing is that it can have a huge effect on the application of a mortgage. Many lenders will ask right from the beginning whether a property is freehold and leasehold. It does not mean that a lender will reject your application straight away. They generally have a set time in years that they will accept for a lease’s length.
For example, the most popular term is ninety nine years as this should generally cover the person’s life time or several different tenants down through the years as the lease only covers the flat itself. If it’s less than ninety nine years you may have to pay to get it extended. There will be a cost for this but with Sam Conveyancing Lease Extension Cost need not be too pricey.