If you’re thinking of buying a leasehold property, it’s important to understand what happens when the lease expires. In this blog post, I’ll explain everything you need to know, so you can make an informed decision.
What is a leasehold property?
A leasehold property is a type of property where you own the building, but you don’t own the land it’s built on. The land is owned by the freeholder, who is the person or organization who grants you the lease.
What happens when a leasehold expires?
When a leasehold expires, the property reverts back to the freeholder. This means that you will no longer have the right to live in the property. The freeholder may then choose to sell the property, or they may rent it out to someone else.
What happens if I have a mortgage on a leasehold property that expires?
If you have a mortgage on a leasehold property that expires, you will still be liable to repay the mortgage. However, you will no longer have any legal right to live in the property. This means that you may have to sell the property, or you may have to find somewhere else to live.
Can I extend my lease?
Yes, you can extend your lease. However, the freeholder is not obliged to grant you an extension. If they do agree to an extension, they will usually charge you a fee.
What is the average lease length in the UK?
The average lease length in the UK is 99 years. However, there are many properties with shorter leases. If you’re thinking of buying a leasehold property, it’s important to check how long the lease is.
What should I do if I’m buying a leasehold property with a short lease?
If you’re buying a leasehold property with a short lease, you should try to negotiate an extension with the freeholder before you buy the property. This will give you more security and peace of mind.
Conclusion
I hope this blog post has helped you to understand what happens when a leasehold expires. If you have any further questions, please don’t hesitate to contact me.
Here are some additional tips for buying a leasehold property:
- Get a survey done to check the condition of the property and the lease.
- Ask the freeholder about their plans for the property and the area.
- Check the lease to see what restrictions are in place.
- Find out what the process is for extending the lease.
By following these tips, you can help to protect yourself when buying a leasehold property.