Hello, what does 'lease' mean ?
If I 'lease' a property, how come the property is stated as being £49,950?
Asked on Apr 23 2013,
General in Cambridge |
If it is a residential property being sold on a 'leasehold' basis, you are purchasing the property for a slice of time (the term of the lease). You would need to find out how many years are remaining on the lease.
If it is commercial, the same rule generally applies though commercial leases are out of my realm of expertise.
Web reference: http://www.myleasehold.co.uk/resources/jargon-buster
Answered on Apr 23 2013,
In this case, the lease of the property will refer to a leasehold. This means that rather than owning the house outright via what is known as freehold, you will only have purchased the right to live there for a certain number of years (although it is important to note that the number of years is normally high).
The benefits of buying like this include the fact that the owner of the lease themselves is responsible for certain things such as land and structural maintenance, meaning that you will not have to do this.
The downsides, as mentioned above, include the fact it can be hard to get the owner to make maintenance changes, and the difficulties with selling down the line. It can be difficult to get yourself a buyer if your leasehold is shorter than 70 years, as most banks will not approve a mortgage on this.
Answered on Apr 24 2013,
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