London Leaseholds - what are the rent/fees ?

[2uk]

I’ve been just shocked again ( can’t be surprised anymore ) that there is , yet , another rent to pay to own a flat in London – the Leasehold “fee” ..

Does this rent/fee apply only for properties in London ?

What will be the average leasehold monthly fee for 1 bedroom flat in London ?

I’ve found that – http://www.leaseholdguidance.co.uk/site/law

but it is not giving an idea of this fee.

[chicane]

I'd imagine the leasehold would vary considerably depending on whether the flat is in Chelsea or Catford. It's not exclusive to London by the way.

[OwlHoot]

If you're talking about ground rent, payable by leaseholders to the freeholder, it's usually peanuts, typically of the order £100 per year.

(But that is for long-established leases, in Edwardian blocks. I don't know if it's a lot more for new builds, but I doubt it.)

What may be extortionate is service charges, especially if the house has been neglected and needs a massive refurbishment, or is a block with a porter.

[2uk]

If you're talking about ground rent, payable by leaseholders to the freeholder, it's usually peanuts, typically of the order £100 per year.

(But that is for long-established leases, in Edwardian blocks. I don't know if it's a lot more for new builds, but I doubt it.)

What may be extortionate is service charges, especially if the house has been neglected and needs a massive refurbishment, or is a block with a porter.

Yes , the ground rent I mean. Jeasus Christ , my friend was giving me a heart attack yesterday , saying that the ground rent can be 50 % of the property - he lives in Kensington in London...

[sasguru]

Yes , the ground rent I mean. Jeasus Christ , my friend was giving me a heart attack yesterday , saying that the ground rent can be 50 % of the property - he lives in Kensington in London...

Its ye olde saxon cleverness. Twats are charged extra.

HTH

[2uk]

Its ye olde saxon cleverness. Twats are charged extra.

HTH

You call Londoners twats ? Oh dear ..

[Fishface]

I am just going through a lease extension - another massive fee.

£20k to add 90 years to 67 existing on the lease.

As the lease diminishes in years the extension fee goes up - less than 70 years then the fee rockets up year on year.

Extend at your earliest convienience.

2.5 years ago my quotation was £9k.

There was also a change in the law - which I won't bore you with.

Ground rent on a 1920's building 1 bed was 8.59 a quarter with my lease extension has gone up to £232 a year with an instrument to increase it also.

Ground rent you *have* to pay or you can forfeit your lease and landlords are vultures waiting to pounce.

A mate of mine de-carpeted a section near his bathroom - his lease required all areas to be carpeted - they made him re-carpet this 1m section and charged him £350 for telling him to do so - or they would obstruct the sale.

Never underestimate the evilness of landlords.

This freehold - leasehold business is the stuff of fuedal times - the quicker we are in Europe then this bulltulip is abolished.

[2uk]

So that means , a leasehold property's price should also be impacted by the current lease expiration date... anyway , thanks very helpful

[NoddY]

Suddenly property doesn't look so hot. Maybe the 'asset' isn't one after all. Enjoy the squeeze.

[Bumfluff]

First place I bought was a flat lease hold bought it with 80 years on the lease the year the law changed regarding lease extension. I didnt know and socilitor never advised me, below 80 years you have to pay something like 50% of what the property would go up in value to increase the lease. I sold with 76 years on the lease, freehold was a tw*t and even charged me £500 for a licience to to sell the flat, each time a sale fell though and I got another buying it was another £500 for a new licience, even charged me £60 to put new double glazing in.

I would avoid lease holds if at all possible unless you get a massive lease and some gurantees on the service charge increases. I would never buy leasehold again it was a total nightmare.