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Leasehold flat purchase - What should i be looking for?


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Hi Guys,

I'm looking for some advice, i currently have 1 BTL property a terraced house but looking to add to this with a 1 bed flat.

Leasehold isn't something i've Purchased before so just want to see if i'm missing anything.

Flat is 1 of 2 in a midterraced house

Lease length is 999 from 1987

No share of the free hold - Freeholder is a seperate individual ie not the owner of the flat above

Groundrent - peppercorn at £10 per annum

Maintenance split between the 2 as and when

£150 per ammum contribution to buildings ins

 

Are there any more questions i need to be asking regarding the ground rent etc? Peppercorn ground rent is something i've only just been reading up on.

 

Or anything in general that applies when purchasing a flat?

 

 

Any advice is much appreciated!

Max

 

 

 

 

 

 

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Check for clauses on the ground rent doubling. If it doubles over a short period, and may go over the £250 amount during the mortgage term, then the lender will decline because it then becomes an AST, and that means you can be evicted if you miss a few payments of ground rent in the same way you can evict an AST tenant if they dont pay. From the amount its at now, i very much doubt this is an issue though.

Service charge and maintenance costs can be factored into some lenders affordability calculations, but any decent broker will be able to factor that in easily.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker & BTL Specialist

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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9 minutes ago, Stuart Phillips said:

Check for clauses on the ground rent doubling. If it doubles over a short period, and may go over the £250 amount during the mortgage term, then the lender will decline because it then becomes an AST, and that means you can be evicted if you miss a few payments of ground rent in the same way you can evict an AST tenant if they dont pay. From the amount its at now, i very much doubt this is an issue though.

Service charge and maintenance costs can be factored into some lenders affordability calculations, but any decent broker will be able to factor that in easily.

Stuart, thanks for your quick response.

I'll check regarding the clauses with the agent

Apart from that is there anything else i need to be looking for? The property is currently vacant and the vendor wishes to either sell or re rent. She is offering to place a tennant (assuming so she can cover costs for the next few months if a sale was to proceed) Should i be trying to purchase as vaccant or with a sitting tennant?

 

Thanks

 

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