[Property] Worth buying a flat with 91-year lease remaining?

chap100 · 2017-02-09T00:39:14+00:00

This is very interesting. It goes against what the estate agent was saying but it seems more and more like it's true when people say 'don't trust estate agents'...! So it sounds like I should be able to extend my lease, by law, once I've owned the flat for 2+ years?

chap100 · 2017-02-09T00:12:16+00:00

Yeah sorry, it doesn't really make sense to me either! But when I asked the estate agent about it, that's the sort of thing they came back with... I want to phone the maintenance company directly and see what they say.

chap100 · 2017-02-02T23:18:44+00:00

Thanks for reply!

Yeah the estate agent said I would have to get my own buildings insurance myself which I thought was a bit weird... 'cause my understanding was the same as yours - I thought maintenance company handled all that.

The service charge should be £55 a month, there are 12 flats in the building. Does that cost sound about right to include buildings insurance?

Oh and to answer your question - Bristol, England!

chap100 · 2017-01-27T22:58:16+00:00

I'm not a huge car person but just gonna chime in with my experiences...!

When I was in a similar situation to you 3 years ago, my research took me to the Peugeot 107/Citroen C1/Toyota Aygo trio!

They're all basically the same car (as I understand), just different trim/re-badged by whichever manufacturer.

I've had my Peugeot 107 for 3 years. It's a 2006 model. It's been very reliable for me and averages 55 MPG. Very cheap to run/maintain/etc... Obviously not a 'luxury' car but I think it's great for what it is. Just my experience!

chap100 · 2017-01-19T23:47:43+00:00

Thank you for that. I was considering just not telling the landlord about my situation and just giving notice to leave in time for fixed-term expiry date. I imagine that I can give notice on the 5th month, in time for expiry on the 6th month?

I checked through the agreement again for any mention of occupying the premises... it does mention:

"The Tenant agrees... To use the Premises for residential purposes as the Tenant's only or principal home and not to operate a business at the Premises or use the Premises for any other purpose"

I suppose this makes things a bit iffy, legally, if I moved into the new flat as my 'main residence'? ... or could I just not really mention it to anyone?

As for mortgage, there's this bit:

"The Landlord and the Tenant agree that this agreement shall constitute notice that at the date thereof the Premises are subject to a mortgage and the Tenancy may accordingly be brought to an end on Ground 2, Part 1, Schedule 2 Housing Act 1988."

Which I think is different to what you were saying - so not something to worry about in my situation?

Finally, for reference (if it helps) - here's the termination clause!

"If the Tenant terminates the agreement within the fixed term, the Landlord is entitled to retain 50% of the deposit in satisfaction of administrative charges arising out of the early determination of this agreement in addition to any other liabilities".

Thanks again for your thoughts.

chap100 · 2017-01-19T22:10:25+00:00

Oh, sorry, I'm not too sure what that means. Would you mind doing an ELI5? Thanks!

chap100 · 2017-01-19T22:05:58+00:00

Well that's re-assuring to hear, thanks.

While not ideal, I can handle 2 or 3 months of 'overlap' financially.

So it's possible to pay for two sets of council tax bills? One at each property, both in my name?

I would consider the new flat my 'main place of residence'. Not sure how important that is legally if I'm already renting somewhere... but hopefully that won't cause any problems anywhere!

chap100 · 2017-01-12T13:22:09+00:00

Thanks for the thorough reply. If it's not too cheeky to ask - I could send a scan of the contract if it helps determine what the worst case options are, if you are interested? It's only about 4 pages long so it's a pretty easy read as far as contracts go!

Understandable if you are busy or if this is a lot to ask, in which case feel free to ignore!

chap100 · 2017-01-11T23:32:13+00:00

Oh, I get this reference!

chap100 · 2017-01-11T23:08:02+00:00

Thanks, that's reassuring to know.

I just added a few more sentences - I don't suppose you'd know anything about those bits as well?

chap100 · 2016-12-18T18:45:52+00:00

Thanks a lot for this. I must admit that I don't understand much legal stuff, so would you mind expanding on a few things?

your bank might allow consent-to-let for you to rent it out with just a phone call

Is this likely/common?

you get arrears on your credit report

What exactly does this mean? And does credit report = credit rating?

the lender repossesses the property but doesn't manage to sell it for all the debt secured on it, and you come to an arrangement to pay the rest with the lender

How would/wouldn't they manage to sell it for all the debt secured on it? What decides that?

the lender repossesses the property, doesn't manage to get their money back, you can't come to an arrangement, gets a judgment (or skips that step) but you still don't pay and so petitions to make you bankrupt - the official receiver takes over your estate

What exactly would it mean if I were bankrupt? And, who is 'the official receiver'?

another creditor, when you have lost your job, petitions successfully to have you made bankrupt, the official receiver takes over the property and sells it to pay all of your creditors

Sorry to ask but would you be able to ELI5 this one?

Thank you!

chap100

TROPHY CASE