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Hi everyone, A few month ago I viewed a house which was advertised as a freehold property, I asked the estate agent to confirm this at least twice and they said the owner had purchased the freehold 20 years ago. After some negotiating on the price(£190k down to £160k) they accepted my offer in December and took the property off the market. The searches came back in January and it turns out the house is actually leasehold, the freehold is owned by the council and the head lessee is a construction company. The house is on the small side and very close to the city centre. It is a great location for a young couple or family but it definitely isn't a 'forever home' and it would't be of much interest to an investor, the home buyers report confirmed it is worth about £160K. I am fortunate to not need a mortgage and intend to live there for about 2 years before selling. My question is, If I buy the property as is (with 99 years left on the lease), is it likely to hold it's value for the 2 years? Also, how difficult would it be to obtain the freehold, before and after purchase? Any advice would be appreciated, thanks in advance :).
Head Lease - Advice anyone...
Justin Richards posted a topic in Other AdviceHi I am hoping someone can help me.......I am looking to purchase a first floor flat which is above a shop and it has 2 other flats above it, the shop itself owns the freehold from the floor to the ceiling of the shop then there is a head lease owned by a third party in place which covers the additional 3 flats above the shop starting from the first floor to the 3rd floor. Each flat then has its own lease under the head lease. In the past there have been problems trying to sell the flat due to the fact that mortgage companies don't like/understand the head lease. I am able to purchase the flat as a cash buyer and also the head lease which I believe in effect means I should have a bit more control and then be able to refinance, this is my plan anyway. If anyone can give me any help or advice on this type of thing from either a lease or a mortgage perspective I would be very grateful, regards Justin