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In the UK, usually you negotiate for the occupier to refresh the lease before concluding the sale. After 50 years, you'll probably be dead so you don't have to
by falsedan 8y ago
In the UK, usually you negotiate for the occupier to refresh the lease before concluding the sale. After 50 years, you'll probably be dead so you don't have to worry about lease renewal (in the UK the standard leasehold is 99 years, so you'll definitely be dead by then).
If you were due for a renewal, and you didn't have the funds to pay the fee, you'd remortgage. If you were very wise, you'd take out an insurance policy when you moved in to pay for it.
- C1sc0cat 8y agoIt effects the value of your estate and you wont get a mortgage on a short lease very easily.
- mcv 8y agoIt's also not necessary for a short lease. If you're going to pay every month or every year, a mortgage is pointless. If you want to pay it off for 50 years, that's when you're probably going to need a mortgage.
- falsedan 8y agoIn the UK, this part: > In the UK, usually you negotiate for the occupier to refresh the lease before concluding the sale is a requirement your mortgage lender will impose. Yes, it puts a burden of a few hundred pounds of solicitor's fees + lease renewal to get the leasehold reset when your executors/inheritors dispose of the property.
- GordonS 8y agoAren't leaseholds pretty rare in the UK? I'm in Scotland, but I don't think I've ever come across a leasehold property here.