Leasehold Properties Becoming Very Hard To Sell

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Property Accelerator - James Nicholson

Жыл бұрын

Leasehold Properties Becoming Very Hard To Sell
This Law Has Now Passed - Here Is The Latest Video • SHOCK Leasehold Reform...
Explore the escalating complexities of selling leasehold properties in this video. We delve into changes in legislation, ground rents, service charges, and leasehold enfranchisement, providing expert insights and practical solutions. Ideal for leaseholders, potential buyers, and those curious about the current property landscape.
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Пікірлер: 130

@propertyaccelerator Ай бұрын

This Law Has Now Passed - Here Is The Latest Video kzfaq.info/get/bejne/pKiUiM2hzp-rqGQ.html

@kalamuddin4253 10 ай бұрын

Private freeholders management companies are discusting

@propertyaccelerator 10 ай бұрын

🙌

@Bigjohn277 Жыл бұрын

Love your content, James. My first house was an ex council Tyneside flat and the service charges were reasonable, that said in large apartment blocks they are stupidly high. I avoided leasehold when I was a landlord and I would recommend anyone avoid it.

@propertyaccelerator Жыл бұрын

Thanks John really appreciate you watching. Agreed, I do buy leaseholds still but only if there is a reason. I purchased one last year as I owned another property in the block so it gave me control. Otherwise I focus on houses.

@emma-kp8vz 4 ай бұрын

Leasehold properties are OK if they have a 999 year lease with a peppercorn rent. Alot of landlords don't bother collecting the rent as it's so low. Mine was £3 a year. It's mainly newer builds which offer a 125 year leasehold rent which after 40 years, makes harder to sell plus to extend a few years, costs thousands. They seem a con.

@lhefe85 Жыл бұрын

Hey, you forgot about flats with share of freehold. Also a massive factor apart from ground rent is super high service charges especially in older mansion blocks and new builds.

@propertyaccelerator Жыл бұрын

Good point, I have flats with share of freehold they are much less hassle.

@markroyds23 10 ай бұрын

I used to own a flat with firstport as the managing agent. They put there service charges up to absolute savage highs.... In 4 years it doubled. It's just such a scam...

@markroyds23 10 ай бұрын

Old leasehold houses aren't so bad. I've recently bought a leasehold. With 850 years left on the lease, an absent landlord aswell as ground rent being 50p a year.... It's basically freehold at this stage 😂 but flats are a different story....they are nothing but problems. I sold my flat recently to buy my house and the lease was just a legal mine field. It was so difficult to sell it with a doubling ground rent every 10 years... I had to knock a ton of money off the asking price to suffice for the stupid conditions in the lease. Just a nightmare. Don't ever buy a flat people. I can't speak on new build leaseholds but older ones I find are still a good choice

@propertyaccelerator 10 ай бұрын

Yeah leases can be a problem

@propertyaccelerator Жыл бұрын

🔥 Get Access to the Property Accelerator Course HERE: property-accelerator.co.uk/join/

@lesleystewart5882 Жыл бұрын

Dont touch them. The money you pay a month mostly £150. Will get you a mortgage £20.000 extra. And its not wasted like maintenance fees.

@propertyaccelerator Жыл бұрын

👍

@mbbx5va2 Жыл бұрын

People in london and many large cities have no choice.

@stevejakab 2 ай бұрын

It’s hard to sell mine because the landlord (E&J) won’t accept the buyer’s mortgage lenders requirements for a deed of variation. Additionally, my service charge is close to £4K a year for next to no service (a bit of cleaning in the communal area). That is also making it hard to sell and keeps the value down while the freeholder creams it in via the corrupt managing agents (Centrick)

@propertyaccelerator 2 ай бұрын

👍

@malcolmkempster7858 2 ай бұрын

Yes think we are all waiting to see what happens

@propertyaccelerator Ай бұрын

Will have an update tomorrow.

@ruthcormack1765 10 ай бұрын

yup, and because of this i just bought a 125 grand 2 bed 700 sq ft flat / 100 yr lease for a cool £70k.

@propertyaccelerator 10 ай бұрын

Nice work

@rikardsaje Жыл бұрын

My leasehold properties are great, very reasonable management fee with peppercorn ground rent. They look after everything and 999 year lease. There's a resident who sits on the board, plenty of money in the slush fund. I don't look at flats with silly management fees. Keep it under £1000 .

@propertyaccelerator Жыл бұрын

Thats awesome there are good leasehold properties for sure. Its just very hard to know whats good and bad when you buy. Obviously the seller will tell you its all great as they want it gone.

@rikardsaje Жыл бұрын

@@propertyaccelerator yes definitely, I bought the flat to live in then rented it out and have bought another in the same block, will try and get a few more.

@reduitman Жыл бұрын

However if the leaseholders enfranchise and buy the freehold from the landlord that would end ground rent and they would be in control of expenditure and service charges.

@propertyaccelerator Жыл бұрын

True and its getting easier to do that.

@Han-es8qu Жыл бұрын

Certainly, it won't make it cheaper to extend the lease with the new reform as in the past every reform made it even more expensive.

@propertyaccelerator Жыл бұрын

Read the bill its to make it much cheaper.

@baileyssoroya3200 Жыл бұрын

Good video. How about service charge which is also very very high in London.

@propertyaccelerator Жыл бұрын

With the new leasehold reform you will if others agree be able to change the management company.

@Bloody_alchemy Жыл бұрын

Nothing wrong with flats i just got one in Hastings. Fixed ground rent for the next 26 years and 13 years before ive got to worry about lease extension and cashflows me well after costs

@propertyaccelerator Жыл бұрын

For me they have done well, I started with flats now I prefer houses. The problem is with all the leasehold changes in the news its putting off buyers.

@KINGZ44four Жыл бұрын

One of the most important things in leasehold flats is your neighbours, as long as you live in a small building no less than 12 apartments and all leaseholders get on and work together. It can be better than freeholds.

@propertyaccelerator Жыл бұрын

I own 6 leasehold properties, 3 we get on 3 we dont. They can be a bloody nightmare.

@KINGZ44four Жыл бұрын

@@propertyaccelerator I can imagine what a nightmare that is, all leaseholders should have a common interest at the very least to protect their assets. I also think the gov should offer a contribution to buying the freehold if majority decide, sooner or later we will have to get rid of this medieval laws called leasehold.

@mbbx5va2 10 ай бұрын

I see blocks where flats are selling like hotcakes. Leaseholds will always have value as often they are located in places where people want to live. Alot of the people at work that have freeholds often have to commute long distances to get to work - they are often bald or don't look healthy most probably due to commute stress over time

@propertyaccelerator 10 ай бұрын

There is some ares first time buyers are taking the plunge. Mostly due to the fact they see rents rising so much.

@mbbx5va2 10 ай бұрын

Im buying one now. I thought it would be easy hasn't be straightforward. Been in the transaction 6 months.@@propertyaccelerator

@shihuicheng7188 9 ай бұрын

Very well informed. Thanks! I bought a leasehold flat in London 2 yrs ago with 83 yrs lease left. I am about to be owning the property for 2 yrs so I am considering lease extension as the lease getting down to 81yrs. What would be your suggestion as shall I wait for the government's policy to be more clearer on lease issue, or shall I extend my lease asap as it getting down o the 80yr? Your seggestion is highly appreciated!

@propertyaccelerator 9 ай бұрын

Thats a tough one as you are on the cusp of the marriage value. I would wait until the Kings speech next month, if no mention then get going with the extension.

@shihuicheng7188 9 ай бұрын

Thanks for your suggestion! Very helpful!@@propertyaccelerator

@ryu029 Жыл бұрын

I'm selling leasehold house at the moment and buyers lender are insisting I extend the lease which has 83 years left to run!

@propertyaccelerator Жыл бұрын

Someone will buy at that low lease, BUT they will want a BIG discount. It might be worth extending before it drops into marriage value (Google that if you dont know)

@stevefairbanks835 10 ай бұрын

Looking to buy at the moment, but will not buy a leasehold property, with the issues mentioned plus disgustingly high service charges

@propertyaccelerator 10 ай бұрын

🙌

@hunglikedonkey 10 ай бұрын

Problem is, I think you have to pay around £600 up front for someone to tell you how much a lease extension will cost, if you turn round and say no I'll do it later, I presume you then have to pay another £600 odd to get another price, am I right? Excellent video though, will watch more.

@propertyaccelerator 10 ай бұрын

You can get the rough price using the calculator on this site www.lease-advice.org/

@Akos-e Жыл бұрын

Hi, would you recommend still buying a leasehold flat, if it has a long lease and low ground rent?

@propertyaccelerator Жыл бұрын

Id suggest buying a house if you can, but leasehold can work as you said if its got long lease and low ground rent.

@marshacooper9088 10 ай бұрын

Sounds like a type of remnants of European feudal system!

@propertyaccelerator 10 ай бұрын

👍🏻

@arshadabbas2634 9 ай бұрын

what do you think for a recent build property in 2014 and ground rent is NIL with the remaining lease term is 241 years?

@propertyaccelerator 9 ай бұрын

Seems fine on the lease side of things, just make sure you get it for a good purchase price.

@arshadabbas2634 9 ай бұрын

@@propertyaccelerator many thanks for your quick reply. Their asking price is £240k and its been on market for more than a month now. How I can better assess the purchase price and can negotiate the price? sorry I am FTB so not sure if I am asking sensible question :)

@stevo728822 Жыл бұрын

How can you have freehold on a block of flats where multiple properties are on the same area of ground?

@propertyaccelerator Жыл бұрын

One person / company owns the freehold normally. Some properties come with your % of the freehold those are not an issue.

@propertyaccelerator Жыл бұрын

Thats much better system.

@stevo728822 Жыл бұрын

@@propertyaccelerator That makes no sense. The whole point of freehold is that you can do what you want with the land. The Scottish system means you have to negotiate among all the shared freeholders.

@realt1984 9 ай бұрын

Hello, how much is it to extend a lease just roughly so I know as I am looking to buy a flat has 90 years lease and when do you have to renew a lease?

@propertyaccelerator 9 ай бұрын

This site has a great calculator www.lease-advice.org/

@realt1984 9 ай бұрын

@propertyaccelerator thank you ❤

@Gargamel-n-Rudmilla 9 ай бұрын

The marriage value does not need to be paid upfront at all. Just make the freeholder have a beneficial interest in the property. The interests will be protected on the Land Registry by a restriction preventing the legal owners from selling the property. The beneficial interest can be created by a trust deed since it is co-ownership interest in the property and as such a Trust of Land arises automatically but given the beneficial interest has not contributed to the purchase price or mortgage then this interest must be protected explicitly in a Trust deed. I am a Cinveyancing Paralegal. The above should settle the matter very fairly. Please consult your local Conveyancer or Solicitor for detailed advice.

@propertyaccelerator 9 ай бұрын

Id rather wait and see if Marriage value gets removed. But thanks for this alternative I am going to look into it. What if FREEHOLDER does not want to do this and just wants the money?

@Gargamel-n-Rudmilla 9 ай бұрын

@@propertyaccelerator .well the leaseholder is still stuck I guess. My solution is fair I think, unless the freeholder hates the leaseholder guts or is taking the piss, then their interests are protected when the house is sold and they get their Marriage Value. If house prices are rising then this could be a nice uplift relative to getting paid now. Obviously if house prices are falling then they would more likely demand cash. Solution 2 is a uses this via a mix of some cash and the balance in be beneficial ownership. Example- property value uplift with lease extention is £100k. Marriare value is £50k. Leaseholder offers £5k in cash now and £45k is some % of the property value post lease extention. This % is then the beneficial interest that the freeholder has in the property. Ps Who has possibly £50k in cash, on hand. Most people are asset rich but cash poor.

@Garce227 9 ай бұрын

⁠

@Blackmessa6868 3 ай бұрын

Will ground rent really disappear though or will they just increase service charges to make up this loss?

@propertyaccelerator 3 ай бұрын

You would have the right to question service charge which you dont have now.

@roystonvehicles9129 Жыл бұрын

On a different note mate, I've been paying extra on one of my mortgages, trying to get it down due to 7.18%i had an e mail now after sending 20k asking to prove where the money has come from, it's no problem, but maybe my accounts not been credited yet, kinda makes you think they want to keep you on your normal payment just to extract 7.18% they're asking me things like I'm applying for a mortgage (!) I've had a nightmare with this company since 06,they were fined for unfair practices a few years ago.

@propertyaccelerator Жыл бұрын

100% they dont want you to pay it off, debt is their business.

@roystonvehicles9129 Жыл бұрын

@@propertyaccelerator looks like that mate, in the credit crunch they once put a for sale sign outside, took me to court for small arrears, once gave me 2 weeks notice, denied I'd paid to a court, now years later I've been doing well they're after me from another end, I can see them just coming up with condition after condition to not let me pay it off early, over the years I've had some massive trouble with mortgages, try loosing a house as you've signed a lpa agreement, no recourse to court, just took it.

@Ioria89 Жыл бұрын

Leasehold is such a scam, you buy a property but you cannot even do what you want with it. Not sure why it's still legal in UK, or why people even buy them.

@tonyadams8812 Жыл бұрын

Good points,well made. Anybody who has got a leasehold is just a glorified tenant.

@propertyaccelerator Жыл бұрын

A lot of people can only afford a leasehold, its where most people start especially in the south.

@propertyaccelerator Жыл бұрын

👍

@Ioria89 Жыл бұрын

@@propertyaccelerator In London leasehold cost the same as freehold, it's completely crazy!

@johnross2924 10 ай бұрын

It's probly politicians and law makers that own the land, maybe that's why it's still legal 🤷

@eldoofthe3rd Жыл бұрын

When if at all is marriage value going to be abolished? Because im looking at buying a property that has less than 60 years left on the lease costing roughly about 10-15k to renew, im not fussed about paying that but why should someone else profit from the money time and effort i put in when they haven't paid a penny or even looked after the garden i couldn't even open the back door due to the brambles blocking the door. There is a case of this freeholder trying to get a 90 year old woman to pay 36k because she bought her house back when property was cheaper, she is now needing to be in a care home which she was planning to use the money from the sale of her property to pay for that but cannot because of the freeholder demanding 36k it literally makes me sick that people can do this

@propertyaccelerator Жыл бұрын

It terrible, we wont know until the Kings Speech in the autumn if this gets abolished. Really hoping it goes as its very unfair.

@eldoofthe3rd Жыл бұрын

@@propertyaccelerator I hope it does as well because this is just daylight robbery, imagine me asking for your profits off your KZfaq channel just because I've liked a video that's essentially what they're doing.... Thank you very much sir for replying and I hope you have a great day

@Gargamel-n-Rudmilla 9 ай бұрын

Only buy a leasehold if the lease is 999yrs. Now u will need to ensure the service charge is a peppercorn and also ground rent is zero or fixed, ideally at a low value.

@propertyaccelerator 9 ай бұрын

🙌

@grubababa7855 9 ай бұрын

I bought it and now I cannot sell it.

@Gargamel-n-Rudmilla 9 ай бұрын

@@grubababa7855 sue your Conveyancer for negligence. Ps I don't know what they do, they must protect your interests. What sane lawyer would advise their client that these leasehold terms are fair and in the best interest of their client - you in this case. If people were choping off their left arm to buy a leasehold because the freeholder/seller demanded it and other buyers consented to such in the past, what does that have to do with your transaction. If your Conveyancer gave you a title report and he or she never highlighted these risks then I think you would have a very good claim. Or you could make a claim against the freeholder that the leasehold terms constitute unfair practices and took advantage of you the leaseholder because there was unequal negotiating power. You could therefore seek to get the leasehold contract rescinded and you can then return the property to the freeholder/seller. Obviously you will need to seek advise from another lawyer ( practicing property Litigation this time)...... I know, it is a terrible thing needing to use a profession that has soo much shit on their hands yet there is no other avenue to use to secure you rights. Our system is not set up to prosecute lawyers or indeed judges. You will first need to make a complaint with the Conveyancer if that is the route you take. Then you will need to take it to the Ombudsman since the Conveyancer will obviously reject your claims. Good luck.

@Venatus_K 10 ай бұрын

I own a house on lease hold. I pay £2.20 a year. I have 103 years left on the lease. Should I be worried? Or can I apply to extend the lease this early? The last lease was granted for 200 years. Any advice?

@propertyaccelerator 10 ай бұрын

No you should not be worried, you need to worry as it gets closer to 80 years so a while yet. I would wait and see what happens with new laws coming out later this year.

@Venatus_K 10 ай бұрын

@@propertyaccelerator thank you for replying and for the advice. I’ll wait for to see what happens with the new law. Just one more question…do you have to wait till it gets close to 80 years to extend the lease or will I be able to extend it even if you had over 100 years left?

@dahliagallier8770 8 ай бұрын

You may extend at anytime.

@voiceguy554 Жыл бұрын

Leasehold properties needs to be abolished...the landlords took advantage of the system and poor people who were working hard to earn their living and too naive to read the fine print. The landlord does nothing and just there to collect the money e.g. if the building is owned by landlord then why tenants have to pay the service charges, insurance etc. and that too at a higher price compared to free hold house! Every time you switch mortgage the landlord comes in with his strange demand for some out of the world fees. Worse of them all is shared ownership where everything is double worse. Earning money by creating value is good...but this is just taking advantage of system and people is not.

@propertyaccelerator Жыл бұрын

I agree, the problem is FREEHOLDS are worth so much money someone would have to pay to abolish them. That would be the Government and would cost billions. I think they should abolish for new builds as a start, then the value of FREEHOLDS will drop over time.

@user-iv6gf8fo8w Жыл бұрын

With all the talk about the housing shortage excluding them from your search would only mean even less housing. By default they are still needed even with all the costs.

@propertyaccelerator Жыл бұрын

👍

@user-kx6qy2dm8e 9 ай бұрын

We are in the process of buying a retirement apartment for £215,000 with a 66 years lease. Most buyers pay in cash from the sale of their freehold property. Do you think that we should proceed as we or our children will want to sell on at some time in the future.?The Government say that they will stop Marriage Value and Labour say that they will change leasehold in the first 100 day. We don’t want to leave problems for our children. We are about one month from completion.

@propertyaccelerator 9 ай бұрын

I would assume the Goverment wont abolish leasehold and wont abolish marriage value. Then if they do its an added bonus. Make your kids aware of the short lease so they can deal with it. But if you are happy with the price it works, they will still build equity over the years they can use to extend the lease.

@mbbx5va2 Жыл бұрын

Your comments are a generalisation. A good flat in high demand area where people want to live will always sell. Yes its an economic downturn and rates are expensive so not many buyers in general. I prefer a 30min commute living in a flat than 75 min commute each way living in a house

@propertyaccelerator Жыл бұрын

👍

@mohsensalimy66 Жыл бұрын

How to be freeholder for flats?

@propertyaccelerator Жыл бұрын

You can buy the freehold if the current owner wants to sell it. They are not great to own anymore though

@grubababa7855 9 ай бұрын

Tell me about it. I cannot sell my flat (994 y leasehold) because my freehold doesn't want to agree and she wants it but for her offer is ridiculous low. She wants to use her "power". What can I do? 🤷

@propertyaccelerator 9 ай бұрын

Wow thats crazy, surely your solicitor can help you out?

@grubababa7855 9 ай бұрын

@@propertyaccelerator My solicitor has told me that she has rights to do it. My options are to sell the flat to her or keep it. Things are more complicated because couples of months ago she became a owner 3 flats in our 4 flats building.

@sabrinat.8146 5 ай бұрын

Yeah shame is the only way to buy in England as freehold are becoming les and less available

@propertyaccelerator 5 ай бұрын

👍

@jimbo200 Жыл бұрын

James is below 80 or 70 years the benchmark ?

@propertyaccelerator Жыл бұрын

Its 80 years, which is crazy I will be long dead before the lease ends!

@doug2279 Жыл бұрын

you kept saying that leasehold reform was coming but truth is most lawyers writing about it believe its unlikely abolishment of marriage value will apply to old leases most likely would only be on new leases you got that all wrong

@propertyaccelerator Жыл бұрын

Lots still saying Marriage Value could be going, I've made it clear in a number of these videos until its done dont bank on it. bhwsolicitors.com/news/will-the-government-abolish-leasehold/

@jennymoss2122 3 ай бұрын

Why do they have leasehold houses if the rent is peppercorn and lease over 980years. Why not just sell it as an ordinary house with no conditions, I don’t understand.

@propertyaccelerator 2 ай бұрын

Other properties in the block might have lower leases or not extend. That has some value to them still, but freeholds will be worth much less money for sure.

@jennymoss2122 2 ай бұрын

@@propertyaccelerator I don’t understand your reply. Does this mean a leasehold can never be owned out right by the occupants?

@doug2279 Жыл бұрын

totally wrong about ground rent in hastings being 10k per year it is service charge and it is marine court and because the block was collapsing and the fact that it is listed has meant the works cost millions and millions so thats just wrong about ground rent being a grand a month when I have over ten properties in that area and know the block you are talking about as but it is service charge not ground rent so misleading and factually wrong. Marine court is a famous case I cannot think of anywhere else. Queens apartments also has some high service charge in the side block but that is again service charge not ground rent cannot think where it could be and think that is wrong.

@propertyaccelerator Жыл бұрын

I stand corrected. Those Marine Court properties have been on for years thanks for sharing more information on them sounds like they are one to avoid. Maybe there value will shoot up once the work is all done.

@andrewbarton3040 Жыл бұрын

Leasehold needs to be abolished whats the point taking out a mortgage on a flat if someone else owns the land below people are just greedy

@propertyaccelerator Жыл бұрын

I agree the problem is freeholds can be worth millions, who pays them off? You can just take an asset away from someone without compensation I dont agree with that.

@Bushwacker-mb6hw 4 ай бұрын

Wouldn’t touch a leasehold with your money!

@propertyaccelerator 4 ай бұрын

👍

@lionzion86 11 ай бұрын

Good, serfdom principles shouldn't exist in 2023 and the whole system needs a re-write.

@propertyaccelerator 11 ай бұрын

Agreed

@10hawell 2 ай бұрын

I'm not British, but I'm a control freak and interested in setting up leasehold when selling plots on my land. I'm a firm believer of never giving up something you once got, i hate house flipping, market speculation, crypto, i want to hoard tangible goods. If lots of people hate you they will remember you when you die, and that's kind of immortality you can get without believing in heaven.

@propertyaccelerator 2 ай бұрын

👍