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Is it harder to sell a leasehold house?

Asked on Feb 25 2013, Selling in Letchworth Garden City | Report content

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  • Hello it is slightly harder only due to the fact that the majority of buyers would prefer when buying a house it to be freehold. However in essence a leasehold house is no different to selling a leasehold flat. Having said that the saleability of the property depends on the following factors, length of lease, service charge and ground rent charges as if these are high they will impact the saleability. Good luck.

    Answered on Feb 27 2013, Report content
  • Hi djc75, There can be certain issues when it comes to selling a leasehold house when compared to a freehold. For those unaware, a leasehold is where you buy the right to live within a building for a set number of years (usually amounting to a great many), rather than actually owning the property itself, whereas freehold is outright ownership. The issue with selling can come when the leasehold starts to get a little shorter. Many banks and lenders will not give a mortgage on a house that has less than 70 years to run on its leasehold agreement, which means that it can be a real struggle to find a buyer. There are ways around this though. For example, you can apply to have the leasehold extended, although this will cost you, meaning that the possibility of finding a buyer increases considerably. Many thanks, Scott

    Answered on Feb 27 2013, Report content
  • Also as we found to our cost there are different types of leases. We withdrew from a house which had a 'good' lease category which our solicitor said would make it very difficult to mortgage / sell in the future. What was needed was an 'absolute' category of lease which with a long lease would make it like a 'freehold'.

    Web reference: http://Bloss

    Answered on Mar 4 2013, Report content

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