UPDATE 1) One point not mentioned in the video is that the announced changes should also make it easier and cheaper for leaseholders to collectively buy the freehold of their building and the land it is on.
@andrewboateng3223
3 жыл бұрын
Great video brother
@SelfInvested
3 жыл бұрын
Thank you! Have you decided what you’re doing with your freehold purchase?
@HarryNicNicholas
3 жыл бұрын
this is my first visit so if the answers lie elsewhere apologies. i bought a retirement flat back in 2013, i had financial troubles so took out an equity release, as part of the terms i extended my lease and on top of that had the rent capped to avoid it becoming a resale issue. very costly. i thought i had sold my flat in march 2018 but the conveyancing took 13 months, by which time one of the chain passed away and the sale fell through. it comes to pass that the solicitors doing my conveyancing were actually under instruction from the management comapny who "run" the flats, a conflict of interest. i have made numerous enquiries and written to all parties involved, and the law society and my MP, but no one is interested. even the law society brushed me off. i would like to seek compensation, or at least have the parties responsible held to account (as this has really upset my life, i'm 66) i wonder if there is a legal body i could consult? citizens advice doesn't seem to do anything anymore and i have no idea how to find a solicitor who isn't going to charge me for saying "i can't help", any thoughts? thanks.
@SelfInvested
3 жыл бұрын
@@HarryNicNicholas Hi Harry, sorry to hear about the difficulties you have been experiencing. To be completely honest, I think your situation is beyond my area of knowledge. Are you on twitter? It my be worthwhile tweeting somebody like Paul Lewis (BBC Money Box) to see if he can help. The Leasehold Knowledge Partnership help people with lease issues. You could try to contact them. Giles Peaker (Anthony Gold Solicitors) was kind and helpful to me with queries I had. You can do a search on Google and find his details. Also, try to give the Legal Ombudsman a call and record details about who you spoke to and at what time. I believe if you raise a complaint with them, they should investigate and inform you of their findings/decision.
@timf6969
3 жыл бұрын
hey lamuir - has this been implemented yet by the government or just a proposal that will take 20y to happen
@victorianolan4837
3 жыл бұрын
I can’t thank you enough . I’ve recently made an offer on a dream property which is a 4 year old Barrett property . I’m having countless worries and conflicting conversations regarding this with friends and family . I’m currently in possession of a copy of the lease and trying my best to decipher everything. Your video helped so many thanks and best wishes to you
@SelfInvested
3 жыл бұрын
You're welcome, Victoria! I'm glad you're finding the videos helpful, and well done for actually reading your lease - many people don't!
@aceofspades5786
3 жыл бұрын
Great video, presentation, explanation and overall content. There are around 4.5 million leasehold homes in England, of which 69% are flats and 31% are houses. The majority of flats in the private sector are leasehold (an estimated 94% of owner-occupied flats and 75% of privately-rented flats)
@SelfInvested
3 жыл бұрын
Much appreciated, Ian. Thank you!🙏🏿 Wow! I didn’t realise there were so many leasehold houses...
@missariesfire
3 жыл бұрын
Saw this announcement and was waiting for you to do a video. I’m seriously considering not going through with buying a resale leasehold property until these changes are implemented.
@SelfInvested
3 жыл бұрын
It's a hard one because we don't know when these changes will be implemented. Make sure you get advice from your solicitor before pulling the plug. Do you know the terms of the lease you are buying, such as lease length, ground rent (and how it increases), etc.? If I wasn't buying a new build property, then I don't think it would make too much of a difference, as it's likely to only be new, and newly extended, leases that benefit from 990 years and zero ground rent. If you do buy and you have to extend your lease in the future, you should benefit from these changes and the cost should be fairer than it is at the moment. But make sure you get legal advice from your solicitor!
@kierand9410
3 жыл бұрын
@@SelfInvested Isn’t it also a possibility that the changes aren’t implemented. Freeholders are a wealthy bunch and hold a great deal of political power. I don’t see them letting this go ahead without a fight.
@SelfInvested
3 жыл бұрын
Yes, it is a possibility that the changes will not become law. But I think the cat is out of the bag with this one now, and it will be difficult to get it back in... The government publicly announced they will be making these changes so I think is it more a matter of ‘how’ and ‘when’, rather than ‘if’
@kierand9410
3 жыл бұрын
@@SelfInvested I don’t disagree that reform is inevitable but we must be cautious about what form it will arrive. As it stands, these are merely proposals, what’s eventually written into law may be considerably watered down.
@SelfInvested
3 жыл бұрын
@@kierand9410 You’re not wrong!
@karmikid
3 жыл бұрын
Amazing content, I’m learning a lot because of you. Thank you
@SelfInvested
3 жыл бұрын
You're welcome, brother! I'm glad you find it useful!
@63Baggies
2 жыл бұрын
@@SelfInvested You should consider doing a zoom call with a Q & A segment; it'd be a lot of fun and really help your subscribers.
@ashromeo9593
2 жыл бұрын
I would sincerely say that your presentation is 'absolutely legendary'. Your voice-command, speech-control, your tune, and your body language as well, are all proven high-skills. One unintentional error appeared at the beginning of this video, you had mistakenly taken a freehold instead of a leasehold, which may or mayn't confuse the audience. Without being rude, I would encourage you to be 'Proud of yourself more' because you've got all essential criteria for great charisma, I mean, look sharp, wear a suit, set back firm on a working desk, and speak to your audience within a charismatic manner. Well done above all, and I am totally honoured to watch your videos, and I promise that I will ensure that I follow your series.
@SelfInvested
2 жыл бұрын
Thank you for the kind message. There is much room for improvement, I agree!
@BRAVE_NEW_1984
2 жыл бұрын
Thank you so much for this comprehensive review! Would be well worth making an update once (or shortly before) the legislation comes in.
@SelfInvested
2 жыл бұрын
My pleasure :) Thank you for watching 🙏🏿 Here’s an update video for you: kzitem.info/news/bejne/0p6vn5-HqqthnoY
@khaledkhorsheed1548
2 жыл бұрын
Your videos are so professional & informative. You should be a top city property solicitor 👍
@SelfInvested
2 жыл бұрын
Thank you, Khaled! I really appreciate the compliment :) Are you about to buy/extend your lease?
@margaretgoodwin7945
2 жыл бұрын
Thank you very much. Hopefully will hear from you soon. God bless from lady who needs help to extend her lease. Pegx
@SelfInvested
2 жыл бұрын
Hey Peg! Thank you for watching 🙏🏿 Have you spoken to a surveyor or solicitor yet? I’ll be making an update video next!
@louchanhousmith463
3 жыл бұрын
Thank you, I’m finding your content really helpful
@SelfInvested
3 жыл бұрын
Glad to hear it! Thank you for leaving a comment 🙏🏿
@jasoncharles2349
3 жыл бұрын
Excellent content I appreciate it, clear simple and to the point I’m learning a lot thank you! 👍🏾
@SelfInvested
3 жыл бұрын
Glad you’re finding the content useful! Thank you for watching 🙏🏿
@joannemarion9553
2 жыл бұрын
Hi Lemuel, Thanks so much for this vid. I am so glad to have found it! In 2017 I inherited most of a small leasehold flat and bought out the other beneficiary so now I am the only owner. I have done extensive renovations (and am still trying to do more, but am in US and Covid delayed things) and I love it. The exterior of the building has been neglected however and now there is a court appointed management company and they are starting to do the 'major works'. Just last year I had contribute 11,000 pounds for a roof repair and more projects are in the queue. The management company has also almost tripled the service fees but I understand that can fluctuate year to year. There is only about 60 years left on my lease if I am reading it correctly. I really want to keep the flat and live in it someday but I am scared of the short lease and the 'major works'. Is the service fee the same as ground rent? Do we really have no control of the monthly service fees and they can be raised (or lowered) without our input? Are we at the management company's mercy? The freeholder is selling one of his flats (he owns half of the units) and I got a valuation this week on mine, priced for cash sale. The leasing agent encouraged me to move forward quickly as prices will likely drop next year. She suggested not extending the lease as there are plenty of cash buyers. What do you think of all this? Any thoughts would be really, really appreciated as all of this is VERY confusing to me. Thank you in advance!!!
@SelfInvested
2 жыл бұрын
Hi Joanne 👋🏿 Glad you found the video useful. There were a few questions in your comment and I’ll try to answer them as best I can, but I highly recommend getting legal advice. Service charge and ground rent are not the same. Service charge is a cost for maintaining the building and shared areas. It sometimes includes contributions towards a sinking fund, which is a pot money used for repair works to communal parts of the building or estate- such as the roof. Ground rent on the other hand is a charge from the freeholder for owning a leasehold on their ground/land. As I understand it, you don’t have control of the service charge, unless your estate is self managed, but the management company does have to show you how the costs were calculated, and you should be able to challenge things that are considered ‘unreasonable’. With regard to the estate agents comments, I would hear what they have to say about the current market but I would seek further advice and consider the wider context of things. Such as, how much is the flat currently worth? How much are cash buyers offering? What’s the cost to extend the lease and how much value would it add to the property? When are the changes to marriage value and the method for calculating the cost of lease extensions going to be enacted? Also, what’s your position? Can you afford to keep the property? Can you afford to extend the lease based on current calculations? Can you wait for law changes that aren’t guaranteed? I would definitely talk to a solicitor and surveyor that specialise in lease extensions, before making a decision. You could also contact the Leasehold Knowledge Partnership for some advice: www.leaseholdknowledge.com/contact/ Generally speaking, cash buyers are looking for deals below market value, so it’s possible the offers you get are not that attractive.
@joannemarion9553
2 жыл бұрын
@@SelfInvested Thank you so much for that link. After reading some of the articles I am super scared of having a leasehold! I want to keep the flat and know a couple who want to rent it from me...but I am fearful of some crazy thing happening and I get unfair charges and have no recourse as it seems the tribunals are on the side of the freeholders...such a strange arrangement, it's like you buy a property but you are still just renting yet you are responsible for major expenses due to freeholders neglect....criminal!
@azam1127
2 жыл бұрын
Well done very well explained
@SelfInvested
2 жыл бұрын
Thanks, Shaf! Glad you think so!
@learninglife3883
2 жыл бұрын
State agents lied on the advert adding the property as a freehold then changed the advert after my solicitor requested freehold documents
@SelfInvested
2 жыл бұрын
Wow! That’s bad! So, it was a leasehold property?
@learninglife3883
2 жыл бұрын
@@SelfInvested yes it turns out to be a lease property but im still going ahead with the sale as the lease is over 134 years remaining
@Seashoreification
3 жыл бұрын
Thank you so much. This is by far the best outline I have been able to access in respect of the government's proposed changes to freeholds/leaseholds. The whole system as it stands is parasitical and I cannot understand why it has been allowed to continue for so long
@SelfInvested
3 жыл бұрын
Thank you Kelsada! I really appreciate the feedback. I agree. It’s an extremely unfair system, which seems to be unique to England and Wales!
@user-gz6tx6yp3v
3 жыл бұрын
I posted a comment on this, agreed for houses but there is a value to the consumer with leasehold apartments with reasonable ground rent terms it actually works out cheaper. Prices of flats will start to go up to make up the shortfall of what they would have achieved from the ground rent.
@SelfInvested
3 жыл бұрын
@@user-gz6tx6yp3v I'll be honest with you, according to KFH, the cost of a flat with a share of freehold is only 1% more than the cost of a leasehold property. So in reality, leasehold properties already cost almost the same as an identical flat that comes with a share of freehold
@user-gz6tx6yp3v
3 жыл бұрын
@@SelfInvested Thanks for your reply. What you have said isn't necessarily wrong, however would it surprise you to know that a fund or group buy freeholds at around 30 times income? I know this because I have sold many large freeholds so I have first hand experience. I cost out developments for a living and a big part was a value of freehold. Now that value cannot just disappear, it has to be replaced to make a development viable and something has to give.
@SelfInvested
3 жыл бұрын
@@user-gz6tx6yp3v I think you’re right, new leasehold flats are likely to be more expensive - probably by a similar amount to the lease extension premium cost - but leaseholders will be buying under improved terms, and leaseholders won’t have nearly the same additional costs and stress that come with extending a lease
@vicade4112
3 жыл бұрын
Ouuu, sounds promising!! Thanks for the clear and straightforward update as always 👌🏾
@SelfInvested
3 жыл бұрын
Thank you! You are welcome as always 🙏🏿
@MichelleAsare
3 жыл бұрын
This was very informative. I was contemplating renewing my lease two years ago. But will definitely Wait for these new changes to be implemented. Thanks for sharing
@SelfInvested
3 жыл бұрын
You’re welcome... How long is left on your lease?
@stevemungai3542
2 жыл бұрын
@@SelfInvested Thanks God I have just come across this video. I put in an offer on a 2 bed flat leasehold in Reading with 104 years remaining on the lease for £170,000 only to be told by my solicitor about a clause on the lease doubling ground rent every 25 yrs from the year 2000. Basically in four years time the ground rent will rise to £250 which means that the freeholder will treat the lease as an assured short-hold tenancy. I have repeatedly asked my solicitor to ask the vendor to rectify the lease but instead they are offering the indemnity insurance. The lender has accepted this insurance, but it only covers their loan not me. The vendor has also declined to carry out the deed of variation and they won't renegotiate the asking price with regards to the new information. My solicitor is telling me that it's ok to go ahead with the sale as I can extend the lease in two years time and get the peppercon ground rent, but I am not sure how much that will cost me? I have done a valuation and I think am paying just below the market price for local flats. Would you advise me to go ahead with these sale, ask for price reduction, ask for a deed of variation or just walk away from this sale? Appreciate any insight. Many thanks
@kennieo7107
2 жыл бұрын
@@stevemungai3542 hello, can I ask what you ended up doing please? I’m currently in the exact same predicament
@TheRaeraeraerae
3 жыл бұрын
Oh my gosh, thank you for this! I’ve been struggling with this subject!!
@SelfInvested
3 жыл бұрын
You’re welcome! Happy to hear you found it useful 👍🏿
@63Baggies
2 жыл бұрын
If you have over 84 years left on your lease, it might profit you to wait until they wake up the House of Lords.
@interflat6692
3 жыл бұрын
Just stumbled upon this video and glad I did, thank you for this valuable up to date information
@SelfInvested
3 жыл бұрын
You’re welcome. Thanks for dropping a comment 🙏🏿
@seanbyrne2220
3 жыл бұрын
Friggin awesome man
@SelfInvested
3 жыл бұрын
:)
@Grains_of_truth
3 жыл бұрын
I am looking to buy a house with my husband but we keep seeing houses that are great except that they are LEASEHOLD. It immediately puts us off even looking at the house because we don’t want to go down that route. Having to pay to do anything to the property on the land we lease, adding a conservatory, changing the garden needing to go through the leaseholders solicitors costing extra cost. We only want a FREEHOLD house to avoid the nightmare. I wish leasehold houses was abolished. I tried asking a seller if they could sell the freehold ((since they have been in the property more than 2 years and can apply for the freehold)) but it was refused so we didn’t bother going to see it. It’s a shame that so many houses are leasehold.
@SelfInvested
3 жыл бұрын
Hey Holly! I don’t blame you. I would avoid leasehold houses as well. The government has promised to ban them and there is a whole campaign seeking justice for people who were mis-sold these homes. I do think the number of new leasehold houses being built has reduced dramatically, though, because of all the campaigning!
@delanieforbes1899
2 жыл бұрын
LOVED THIS VID!!! THANK YOU :-)
@SelfInvested
2 жыл бұрын
You’re very welcome! Thank you for watching 🙏🏿
@neilsmith6092
2 жыл бұрын
Very helpful thanks a lot
@SelfInvested
2 жыл бұрын
You’re welcome 😉 Here’s an update video: kzitem.info/news/bejne/0p6vn5-HqqthnoY
@mariannabosi2572
3 жыл бұрын
Great content 👌 thank you so much!
@SelfInvested
3 жыл бұрын
You’re welcome! Thank you for watching!
@Mysterylady6
2 жыл бұрын
Very useful indeed
@SelfInvested
2 жыл бұрын
Glad to hear it! Thank you for watching 🙏🏿
@cdlv6066
2 жыл бұрын
Thanks so much for this, super helpful content in a world that can be very confusing. Currently trying to buy my own flat, and just subscribed to your channel.
@SelfInvested
2 жыл бұрын
You’re welcome. Thank you for the sub! I hope you find my other videos on leasehold properties are useful. Here the playlist: kzitem.info/door/PLUG_SDz9gLQKoeKClBTqr1cxDl5Z0EilF
@laiedna2392
2 жыл бұрын
thanks buddy your video helps a lot
@SelfInvested
2 жыл бұрын
You’re welcome! Have you watched the update to this video? Here’s a link to it if you haven’t seen it already: kzitem.info/news/bejne/0p6vn5-HqqthnoY
@laiedna2392
2 жыл бұрын
@@SelfInvested watched, very clear!
@SelfInvested
2 жыл бұрын
Gd stuff!
@bc82870
3 жыл бұрын
Good to learn that reform is happening. I am new to UK property market. I think one of the reason why reform is needed is because banks are ridiculously conservative that not giving 30 yr mortgage when remaining lease of 80 yrs is considered short by banks. This locks up so many good quality property and creates vicious circle due to the fact that ppl cannot get mortgage or cash rich ppl tend not to buy "short" leasehold property.
@SelfInvested
3 жыл бұрын
Glad you found the video useful! The stance of banks is unhelpful, but developers are the main culprits. I hope the leasehold system is abolished altogether!
@bc82870
3 жыл бұрын
@@SelfInvested thanks. I hope that too. Your channel is wonderful.
@SelfInvested
3 жыл бұрын
@@bc82870 Thank you :)
@adenikeoke6763
3 жыл бұрын
Brilliant summary! Thank you for sharing!
@SelfInvested
3 жыл бұрын
Thank you! You’re welcome!
@nnenne1
3 жыл бұрын
I live in London and work in the property industry, I tell you what, I’m still bitter after paying over 40k to extend my lease in 2014. Only freehold for me moving forward.
@SelfInvested
3 жыл бұрын
Geez! Not surprised you’re still bitter! Mine costs less than half that and it still hurts :’( Did your lease fall below 80 years?
@bobrew461
2 жыл бұрын
I wouldn't hold my breath on this. As more than 50% of MPs of all parties are landlords, and no doubt Freeholders too!
@SelfInvested
2 жыл бұрын
Ground rent is going there month. Let's see what happens with marriage value - we may be waiting a long time!
@Zoeyw1
3 жыл бұрын
Hooray 😃 on the lease extension and ground rent 🔥🔥🎊🎊🎊🎊🎉🎉🎉🎉 I never wanted to buy a leasehold for these 2 reasons but with these changes , buying a flat is a strong possibility
@SelfInvested
3 жыл бұрын
Haha! Hooray indeed!! Do you plan to buy new build or pre-owned?
@Zoeyw1
3 жыл бұрын
@@SelfInvested hopefully new build
@SelfInvested
3 жыл бұрын
Check out developments by Barratts and Bellway because they recently announced all their leasehold flats will have 999 year leases, zero ground rent and residents will have the right to manage their buildings!
@gman3447
2 жыл бұрын
Great video mate ,Well explained , Thank you for this information Cheers .
@SelfInvested
2 жыл бұрын
A pleasure! Thank you for watching 🙏🏿
@kaykhanom
3 жыл бұрын
Once again, brilliant video. Very informative
@SelfInvested
3 жыл бұрын
Thank you Kay as always 🙏🏿 I appreciate the encouragement!
@addieschat
3 жыл бұрын
Great content, thanks for the update
@SelfInvested
3 жыл бұрын
Thank you! You’re welcome!
@seanbyrne2220
3 жыл бұрын
Awesome man
@SelfInvested
3 жыл бұрын
Glad you think so!
@MatthewClarkeLDN
3 жыл бұрын
Just what I was looking for, thank you!
@SelfInvested
3 жыл бұрын
You’re welcome! Hope you found it helpful!
@MatthewClarkeLDN
3 жыл бұрын
@@SelfInvested i really did...Just need to find out when this will come in play. I'm hoping to purchase a property with 63years left on the lease (for a conversion project)
@SelfInvested
3 жыл бұрын
Oh, ok... It’s worth bearing in mind that there’s no guarantee that these changes will come to law. If they do, there’s no guarantee on when and how they will become law... Have you run the numbers based on the current laws and cost for lease extensions?
@MatthewClarkeLDN
3 жыл бұрын
@@SelfInvested to be honest, no. I just assumed I was protected by law. I haven’t viewed the property yet, but I wanted to know where I stood beforehand... I thought changes were pretty much immediate until I saw your video
@SelfInvested
3 жыл бұрын
@@MatthewClarkeLDN I would run the numbers based on the current laws to be safe. If the laws change, then it’s a positive!
@joelester9694
2 жыл бұрын
You are absolutely fantastic thank you tell me am helping a friend to get an extension to 2 leasehold property one is a council has 60 years to go the other is private with 57 years one is looking for 55k managed to get it down to 49 k this is the council the other freeholder wants 45 k haven’t negotiated a lower figure yet please help
@SelfInvested
2 жыл бұрын
There's no guarantee if or when marriage value will be abolished. Here's an article whic you might find helpful - www.leaseholdknowledge.com/should-i-extend-my-lease-now-or-wait-for-government-reforms/
@nsecretloveth4339
3 жыл бұрын
Quality content, very much appreciated 👌🏾
@SelfInvested
3 жыл бұрын
Thank you 🙏🏿 It’s a pleasure! I’m glad you enjoyed!
@wowwowwow185
3 жыл бұрын
great Vid thank's
@SelfInvested
3 жыл бұрын
You’re welcome! Thanks for watching :)
@seanmarah6886
2 жыл бұрын
Hi there great informative video. I enquired about extending my flat lease 7 years ago and and was quoted 10 grand, I enquired again last week and was quoted 35 grand as my lease is 67 which will out see me. The free holders solicitor wants 5 grand off me as we have no choice in that matter so they have us over a barrel. This is legalised theft and I pray that change comes quick. Like others have said, the dilemma we have is do we wait as each year that passes the cost goes up 2 grand or do we hold out? Do you know if the ridiculous extortionate costs will come down as I don't and will never be able to find 35 grand which like lots of us in this situation means I'm stuck.
@SelfInvested
2 жыл бұрын
Sorry to hear that, Sean. There’s no guarantee on when or how these changes will come into force. Here’s an article I think you might find useful: www.leaseholdknowledge.com/should-i-extend-my-lease-now-or-wait-for-government-reforms/
@CeeCee101
3 жыл бұрын
Great content, thanks!
@SelfInvested
3 жыл бұрын
You’re welcome! Thank you for watching and dropping a comment!
@shaye9330
3 жыл бұрын
I wanted to buy a property this year and now I’m abit confused . I’m tempted to wait for these changes to be made before buying but might take years you never know. I was looking specifically for properties that have around 900ish years on the lease but now I’m thinking of going for a property with maybe around 100 years and just extending it to 990 with zero ground rent when the law passes. New build properties near London are abit pricey and I really wanted to renovate and add value so don’t think it’s the right option for me
@SelfInvested
3 жыл бұрын
Yes, there are no guarantees for when the changes will become law, but there are flats you can buy with a share of freehold, and flats that are leasehold which have had their lease extended by 90 years (so have over 125 years on the lease) and no ground rent. It might be worth looking for one of these types of properties...
@TheWellnessAbbey
3 жыл бұрын
Great video, bro. These changes are positive news.
@SelfInvested
3 жыл бұрын
Thank you Rachel! I’m actually watching your video as I type 😉
@2012dbrown
3 жыл бұрын
Appreciate the information my man
@SelfInvested
3 жыл бұрын
It’s a pleasure. Thank you for letting me know 🙏🏿
@mf732
3 жыл бұрын
great content as always but I would think people that have already extended would probably wait for grand kids or further in the generation to do this 990 extension
@SelfInvested
3 жыл бұрын
Thank you! I think you’re right. The leasehold system by then will probably be even fairer to leaseholders.
@DigitalDiarrhoea
3 жыл бұрын
This is a great video, I’ve recently started researching property and how I could find a way of getting on the ladder (which right now seems impossible) and your videos are really helpful! Everything I have been needing to know. This is a very interesting change, I’ve seen a lot of property’s on the market a lot cheaper because there aren’t so many years left on the lease! An example, I found a house which is on auction for peanuts most likely because it only has 16 years left on the lease. I can see where an offer has been made of £151K (on the legal docs) to the freeholder to extend the lease by 99 years. I would love to know what will happen now if this change was made a law. I would also be interested to know if this change in lease extension rules is an opportunity to buy a house on the market that is cheap(er) due to not many years left on it and an investment opportunity as you can extend the lease for less (marriage value abolished) and add value to the property 🧐
@SelfInvested
3 жыл бұрын
Thanks for watching! I’m happy you liked it 😉 Firstly, there’s no guarantee on when and how these changes will become law. Once they do become law, it should be cheaper to extend a short lease, but not necessarily cheap. Marriage value is just one cost when calculating a lease extension, the lease length and ground rent are two other factors. For example, I extended the lease of my flat when it had 81 years left on it, and the premium I paid was over £10k. If the lease was shorter, or the ground rent higher or increased more quickly, the premium I paid could have been much higher - even without marriage value. In addition to the premium, you have to pay legal and surveyor fees - your own AND the landlord’s - this is easily another £5k. Buying a flat with the expectation of the law being changed so you can profit from it is a speculative move because as I said, there’s no guarantee when and how these changes become law. If I were going to do it, I would speak to a surveyor about how much a lease extension is likely to cost (worst case scenario) and how much value it would add, and base my calculations on these figures. It’s also worth getting legal advice or at lease reading the legal pack and lease...
@DigitalDiarrhoea
3 жыл бұрын
@@SelfInvested thanks a lot for your quick reply and for taking the time to get back to me. Everything you said make sense and I will do a lot more research. You’re right as well, there are other factors that will come into play when extending a lease. Thanks again for your informative content 🥰
@SelfInvested
3 жыл бұрын
No problem. Happy to help :)
@Star1957-s5l
3 жыл бұрын
Well done well explained thank you , when I bought my home was told the ground rent was low never Told it would double after 15 years is the ground rent going to be abolished for existing house owners
@SelfInvested
3 жыл бұрын
Thank you for watching, Stephen, and the kind comment! From my understanding, ground rent for existing leases won’t automatically be removed. It should, however, be capped when calculating the premium you pay to extend your lease using the statutory route. It’s worth mentioning that if you were to extend a lease now, before the changes are implemented, using the statutory route, the ground rent should still be reduced to zero.
@learninglife3883
2 жыл бұрын
Stephen how long is your lease for? Im buying a buy to let property which was originally on the market at freehold but after my solicitor requested the freehold documents the advert on the property changed to leasehold.
@StOrMmaGiiKz
3 жыл бұрын
Typical 3 years ago me and 3 other lease holders on 63 year leases gave the freeholder 100k to buy the freehold in south east London because was more cost effective than to extend the leases the marriage part of gave the freeholder the advantage to basically rip us off now they decide to reform this rip off practise that was even allowed in the first place I hate to think how much cheaper we could of bought it for now to just to extend without all trouble of taking over the freehold to 😡 only plus side was I sold and got out of there I’d never buy into lease again with or without these reforms
@SelfInvested
3 жыл бұрын
I extended my lease in 2019 and was so upset I missed out on this! I took consolation in the fact that you can only make decisions based on information you or is available to you at the time. There was no hint this was on the horizon so you can’t be too hard on yourself. At least you bought the freehold, I only extended my lease by 90 years!! You probably still made the right decision to buy the freehold when you did because we don’t know when, how, or even if, the changes will be implemented, and the longer you leave it, the more expensive it gets!
@itstime6495
3 жыл бұрын
Be careful re marriage value. Its the least likely component of reform to get passed. If it does it will almost certainly come with some kind of compensation element on top of the extension costs. It is probably still three to five years away, if it gets passed. The new online calculator is still another year away.
@SelfInvested
3 жыл бұрын
I think you’re right. The marriage value reform will be the most contentious change. There are pension funds and other investments that have bought freehold deeds based on the current system... If and when these changes are made, their investments may be worth a lot less...
@itstime6495
3 жыл бұрын
@@SelfInvested It is also unlikely to be applied retrospectively. If your lease is now below 80 years, abolishment wont apply to you unfortunately. Too many short-lease owners are really gambling heavily by waiting.
@SelfInvested
3 жыл бұрын
@@itstime6495 I fear you’re right but we will have to wait and see...
@verabhai7563
Жыл бұрын
Will the leasehold extension calculator or Government Leasehold calculator have a provision to calculate a doubling ground rent to estimate cost of lease extension for a doubling ground rent ?
@SelfInvested
Жыл бұрын
Tbh, I’m not sure what the calculator is based on, but it’s not the most accurate because it doesn’t consider how often and by how much your specific ground rent increases over time. My lease extension cost around 80% more (including all fees) than the higher figure the calculator gave me.
@K1NG_EDWARD
2 жыл бұрын
forgive me if I'm being a fool here. but what good is it, to be able to extend the lease on your flat up to 999 years or even 20-50 years, if people selling or actually BUYING the property, cannot get a figure of that price. how do we just simply find out. as a buyer OR seller?
@SelfInvested
2 жыл бұрын
The government has promised to provide an online calculator with these changes, which will give leaseholders and freeholders the price of the lease extension - but we’ll need to see how this works in practice. Currently, you can get an estimate of how much a lease extension cost from a surveyor. I cover it in this video: kzitem.info/news/bejne/mIxpx5WHkXx3aX4
@hpatel5714
3 жыл бұрын
What about current leaseholders? Because of my ground rent being high , I’m having difficulty selling my flat because mortgage company’s saying no.
@SelfInvested
3 жыл бұрын
I’m not completely sure tbh. I think we’ll need to wait and see how the changes are applied. There was talk about limiting the amount of ground rent that can be charged for lease extensions, but the details are not clear or confirmed...
@hpatel5714
3 жыл бұрын
I was thinking those that have long lease like 900 years plus, I’m sure you can extend it to 990 years and don’t pay ground rent, because that is what the government is proposing correct? I’m basically stuck on £550 ground rent per annum flat that no one wants to buy or have issues getting a mortgage as lenders don’t want to touch it. Flat is only worth 250k!
@SelfInvested
3 жыл бұрын
When the changes are made law, even leaseholders with shorter leases, below 80 years, should be able to extend to 990 years. How long do you have left on your lease?
@hpatel5714
3 жыл бұрын
983 lease left but I’m having issues moving mortgage company and selling because of the ground rent being so high. So I was thinking if I extend my lease to 990 years plus when the government bring the new law in so I won’t have to pay ground rent and can sell my property easily, if that make sense ?
@SelfInvested
3 жыл бұрын
You should already be able to extend your lease by 90 years (so to 1,073 years) and reduce your ground rent to zero. Might be worth speaking with a lease extension surveyor to find out how much this will cost...
@mikethorp1625
3 жыл бұрын
Thanks for this announcement. It really is appreciated. I currently have a 1st floor leasehold maisonette with its own small garden (council is the freeholder). I would love to be able to do a loft extension and also build a garden room. With these new changes to the law, would I be able to apply for a loft extension the same as a freeholder could? And is there a possibility I could build a garden room under “permitted development” rules, the same as a freeholder can? I guess I’m just hoping to be able increase the liveable space I have... Thanks
@SelfInvested
3 жыл бұрын
Hi Mike! I think you would need to get legal advice on your specific situation. However, as leaseholder, I think it is likely you would still need the permission of the freehold for a change like that. You will also need statutory approval, such as planning and building control approval (where applicable). You could perhaps look at buying the freehold of your home. Under the new rules, it should be easier and cheaper for you and the ground floor flat to buy the freehold of your building. But you would need to get advice on what you can do, as the building (including roof) would be under shared freehold ownership between you and the ground floor flat. I would speak to the council and get some legal advice if I were you.
@AlienX202
3 жыл бұрын
The freeholder will just increases the service charge to make up the loss in ground rent
@SelfInvested
3 жыл бұрын
Not sure that’s something they could legally do. I think it’s more likely the prices will increase. Also, two major house builders have already said they are handing over management of their buildings over to residents, which means the freeholder won’t be managing the building, and so not receiving any service charge.
@goodgood9955
Жыл бұрын
Is it also true for ex-council flats?
@mrcoiganable2988
2 жыл бұрын
Brill mate
@SelfInvested
2 жыл бұрын
Pleasure 😉
@aninelanalin162
3 жыл бұрын
Great video
@SelfInvested
3 жыл бұрын
Thank you, Aninel. Glad you enjoyed!
@taztbj2786
3 жыл бұрын
brilliant video,very very useful,don't know if you can answer this here,if you do i am sure it will help others,i have a property with 52yrs left on the lease,how will the new laws benefit me(i know they will just want to know how)thanks
@SelfInvested
3 жыл бұрын
Thanks for leaving a message. I’m glad you found the video really helpful. At the moment, when people with leases below 80 years extend their lease, they have to pay an additional cost for something called marriage value, which is the difference in value between the existing lease length and the new lease once extended. This additional cost will be abolished, according government, once the changes are made law. Also, when these changes become law, if you are able to extend your lease using the statutory method, you will get 990 years, instead of an extra 90. Ground rent already becomes zero when leases are extended through the statutory route, so this is not new. Overall, the whole process should be cheaper and easier in future. However, we have to wait for these changes to become law and this could take a few years. It’s probably worth getting some professional legal advice, tailored to your specific situation, to see if it is worth waiting
@banry1174
2 жыл бұрын
Hi. I wanted to ask you about extended 990 years on flats. It's clear with new builds. But we are in the process of buying flat with lease 88 years. First agreement was to give us 990 with the purchase of the flat. Now 2 months in they changed they mind and can give us 90 years but we need to pay for change about £1000. I mean that instead of waiting additional 2 years to be able to extend lease on the flat and avoid payment of thousands of pounds is a great deal.? But I could not understand anc it's still not clear to me how it's going to affect that to people with older flats and when and for how much they will be able to do that 990 lease.
@SelfInvested
2 жыл бұрын
Hi there, sorry for the long wait! I think you might find this article interesting - www.leaseholdknowledge.com/should-i-extend-my-lease-now-or-wait-for-government-reforms/
@nicolagolding3281
3 жыл бұрын
Great info
@SelfInvested
3 жыл бұрын
Thank you!
@cm-to6oi
3 жыл бұрын
Have these changes come into affect..
@SelfInvested
3 жыл бұрын
Not just yet. I believe they will be phased over a number of years. I’ve heard the first change to be passed will be the ground abolition for new leases...
@charliehd123
3 жыл бұрын
This seems great for leaseholders. One thing I wonder though, how do freeholders now benefit from owning the freehold if they aren't receiving any ground rent? How is it profitable for them? Thanks in advance
@SelfInvested
3 жыл бұрын
Yes, you're correcting in your thinking. The freehold becomes a lot less valuable without the ground rent income. I guess that's why Barratts and Bellway are granting 999 year leases now. I'm not sure why they don't give leaseholders the freehold if it holds no value to the freeholder. I need to do some research on this, possibly ask a legal expert...
@charliehd123
3 жыл бұрын
@@SelfInvested Very interesting. Thanks for your response.
@missphilosophie
3 жыл бұрын
@@SelfInvested flying freeholds.
@SelfInvested
3 жыл бұрын
@@missphilosophie Is that what it would be considered?
@missphilosophie
3 жыл бұрын
@@SelfInvested If a flat holds its own freehold it would be a flying freehold. Most leaseholders who enfranchise and buy the freehold hold it in a company with each leaseholder owning equal shares that way the can extend their lease for free without the liability of a flying freehold.
@delanieforbes1899
2 жыл бұрын
I am in two minds whether to go ahead with a flat that has 56 years on the lease not knowing what the freeholder will command... I have used the online calculator via the leasehold advisory service and according to this calculation the price is reflective of the low lease but would I be a fool to buy or not now these new announcements have been made?
@SelfInvested
2 жыл бұрын
I would be very careful of buying purely because of this announcement. We don’t know how and when these changes will be implemented. If I were buying a property now, I’d base my calculations on the current rules, rather than proposed - otherwise I’d be making a speculative decision. Either way, it’s best to get legal advice before making such a big decision
@aldj2792
3 жыл бұрын
Thank you. Any one have idea when this will be implemented as who make this happen they are the owner of all the flat in this country. Obviously they don't want to lose any money.any Way we are heading on right direction.
@SelfInvested
3 жыл бұрын
You’re welcome! I’m hearing over the next 4 years, and it will be phased. Firstly, ground rent for new leases will be abolished and the other changes will follow... Once there’s more info, I’ll make an update video!
@AAA19999
3 жыл бұрын
Thanks for your video, property law is so complicated in the UK ... if we have money available should we be rushing out to buy short lease properties which we can flip after extending the lease (without the marriage value) ?
@SelfInvested
3 жыл бұрын
Now that is what you call a speculative investment! We don’t know how and when these changes are going to be made law. I would definitely seek professional legal and valuation advice both making an investment like that. Unless you know what you’re doing, it’s a bit of a gamble in my opinion...
@AAA19999
3 жыл бұрын
@@SelfInvested don't disagree !
@samuelereira2627
3 жыл бұрын
Thank you for this video. I own a flat with 94 years left on the leasehold. I'll probably end up selling the flat in about 5 years. I was going to extend the lease before then because i know that the value of a property is lower if the lease is approaching 80. But if marriage value becomes abolished then the ~80 mark becomes irrelevant! I'm wondering whether it's now not worth extending the lease because i won't have any trouble selling if the lease is 80-something years when marriage value is abolished. Or do you think the market will always value long leases...
@SelfInvested
3 жыл бұрын
I'm not sure I would say the 80 year mark is irrelevant. Firstly, a lease is a depreciating asset, so the fewer years on it, generally, the less it's worth. Secondly, there's no certainty on when these changes will be made law. Thirdly, the value added by a lease extension could outweigh the cost of it - also, this will generally make the flat more desirable, if it has a long lease length and zero ground. I would probably get legal advice and advice on the cost of extending the lease and the value that would be added before making a decision either way... hope this is helpful!
@richm5601
3 жыл бұрын
Hi there Very informative video indeed I’m in this lease problem at the moment too When do you think the marital value part of it will come into action ?
@SelfInvested
3 жыл бұрын
I’m not sure, to be honest. Possibly a couple years. I’ll need to do an update video on this topic. I think if you’re lease is below 80 years it’s best to get professional legal advice on your situation. Have you done this yet?
@ImmaculateRecovery
3 жыл бұрын
great vid
@SelfInvested
3 жыл бұрын
Thank you 🙏🏿
@Chillednfunked
3 жыл бұрын
I’ve never heard the name Lenuel?
@SelfInvested
3 жыл бұрын
Lol! It’s Lemuel, with an ‘m’. It’s a christian/biblical name like Daniel, Samuel or John, but it’s just not as popular. It’s also the first name of Gulliver in ‘Gulliver’s Travels’
@Nu72ral
2 жыл бұрын
From what I hear thus plan has all but been slashed. Is that true?
@SelfInvested
2 жыл бұрын
Not that I’ve heard. Where did you hear this?
@user-gz6tx6yp3v
3 жыл бұрын
These changes are ludicrous. There are going to be serious repercussions for these changes based on a few rotten apples charging extortionate ground rent on houses which has led to political pressure to make changes. For example for developers, it is a constant battle to keep prices under control to make units reasonably easy to sell. Contrary to popular belief, rising house prices are counter productive because as affordability is stretched it makes it harder to sell units, and developers would rather turn over regular volume of units at reasonable prices as they make more money that way. The problem with removing ground rents is that the ground rent reversion (sale of freehold) is a large portion of the margin they need to make the site profitable, if that is removed then the only options are, keep selling at the same prices but try and make the units smaller, or prices have to go up to cover that shortfall. As a buyer, on average you live in a property 11 years, would you rather pay £200 a year ground rent on a £200,000 property, or £206,000 for that same property? It is quite a difference. For houses though, leasehold should never have been introduced as there was no need, land for houses is far cheaper than areas where apartments are generally built and so it was clearly a cash grab. The other thing is what happens to all our pensions that are linked to now worthless freeholds, and bear in mind they hold billions of it. Who picks up that tab? Oh yes that will be us again. So popular opinion wins, and it is going to cause us unexpected costs.
@SelfInvested
3 жыл бұрын
Hi M, sorry I didn't respond to this message sooner. It was quite long and I wanted to make sure I responded properly. In the example you gave, I'd much rather pay £206k and not have to worry about the increasing ground rent or the more expensive lease extension I'd have to pay because of an increasing ground rent - even if it only doubled every 25 or 30 years. More times than not the leaseholder gets ripped-off because the current lease extension system heavily favours freeholders, which is unfair. Ground rent dates back feudal times when aristocrats allowed the middle-class to have homes but kept ownership of the land. I don't think it has any place in modern England . I also think these changes will have more of an impact on new leases, rather than existing leases that are owned by pension funds. Existing leaseholders will still have to pay to extend their lease, but according to the announcement, it will be fairer and there will be less opportunity for freeholders to exploit leaseholders. Even under the current system, when leases are extended, ground rent is reduces to zero, and so the freehold becomes far less valuable. Adding 900 years to the extension just secures the tenancy for the leaseholder.
@SelfInvested
3 жыл бұрын
Can I ask what your line of work is?
@user-gz6tx6yp3v
3 жыл бұрын
@@SelfInvested Sure. I help developers to plan the eventuall sale of their developments. Much of this involves costing out schemes from planning.
@SelfInvested
3 жыл бұрын
@@user-gz6tx6yp3v Thanks for letting me know. Do you follow me on IG by any chance?
@vinicecleary2782
3 жыл бұрын
This is expected to come into law 2024
@masumap1118
3 жыл бұрын
Great advice! Thank you! What happens if I have a lease which is 119 years but the ground rent doubles every 25 years. Does the new law apply to that?
@SelfInvested
3 жыл бұрын
Thanks Masuma! It's general information, rather than specific advice :) As far as I understand, your ground rent will not be automatically removed because of the law change. The only way the new laws will apply to your lease is when and if you extend, after it becomes law. Hope this makes sense?
@FaizanMunawar
3 жыл бұрын
I am buying 3 bed terraced house at lease hold of 999 years with paying £1 paying annually to them for lease…is it safe ?
@SelfInvested
3 жыл бұрын
TBH, you’re the second person to mention buying a house with a 999 year lease… I’m generally wary of houses with leases, but I’ll need to do more research on houses with 999 year leases… I’ll come back to you, probably with a video!
@African.Diaspora.InLondonUK
3 жыл бұрын
from london brixton uk. black trainee lawyer. if u r a leaseholder, do NOT allow your lease 2 fall below 80 years. as a safety net. 90 years. if u dont have money to extend lease. u property is depreciating...it becomes costly when it runs low to under 80 years. be warned. try to avoid buying a leasehold properties.
@SelfInvested
3 жыл бұрын
Very true!
@equalitypeace1695
3 жыл бұрын
This could not come any sooner . For anyone who has never bought a Leashold imagine buying your first dream home only to find out that you have to pay £250 per year and every 10 years it will double. On top of that if you want to keep a pet or make changes you have to pay £200 to get permission and they can still refuse after. It's such a scandal . The developers sell off the freehold to a investment company who own the freehold abs can charge you anything they like
@SelfInvested
3 жыл бұрын
Let’s just hope the changes are actually made law!
@equalitypeace1695
3 жыл бұрын
@@SelfInvested I have a feeling that it's going to take years before it becomes legislation in this country. The wheels turn very slowly in this country even when there is a pandemic
@SelfInvested
3 жыл бұрын
@@equalitypeace1695 I fear you may be right!
@samn7449
3 жыл бұрын
hi there, i just wanted to ask if you are aware when the new legislation applies, I have a 83.5 yrs lease which i ownde for 10 yrs, and would like to extend it but will be happy to wait a bit if the new rules, many thanks
@SelfInvested
3 жыл бұрын
Hi Sam, I think it's important for you to get legal advice soon. These changes could take 4 or more years to implement, so I'm not sure waiting for the changes is wise. You could also contact the Leasehold Knowledge Partnership for advice: www.leaseholdknowledge.com/ and the National Leasehold Campaign: nationalleaseholdcampaign.org/
@chamudissanayaka5775
2 жыл бұрын
Hi your video are very useful. I m a first time buyer abd of course cannot afford a freehold so I managed to find a flat that says has an 86 years lease and also when you buy the flat you will own 1/24 th of the freehold (in the apartment block there are 24 apartments and 1/24th of the freehold belongs to each apartment). So they say you can extend the lease by just paying the legal free, but doesn't give any figures. Is there a way to find it before I buy it how and how much will it cost to extend the lease and what period I can get the lease extended to?
@SelfInvested
2 жыл бұрын
Hi Chamu! A surveyor should be able to advise you on how much it will cost and a solicitor should be able to advise you on the length. However, it's likely they'll charge for the advice they give. You could get some free advice from the Leasehold Advice Service - clients.lease-advice.org/#/
@mahirkalayci5749
2 жыл бұрын
Hi .do you know when these changes gonna happen???
@SelfInvested
2 жыл бұрын
I need to do an update video, but from I understand the changes will be implemented over a number of years. I’ll try and do an update in the next few months!
@mahirkalayci5749
2 жыл бұрын
@@SelfInvested great thank you
@khazza930
3 жыл бұрын
does that mean (you think) that few remaining years on the leasehold will no longer be a problem when taking out a mortgage?
@SelfInvested
3 жыл бұрын
Not sure that will be the case. A lease will still be a depreciating asset, so I think lenders will still want to see at least 30 or 40 years beyond the length of the mortgage. So, with a 30-year mortgage, at least 60 or 70 years on the lease...
@nuray3486
2 жыл бұрын
Hi, please help me. I have a one bed flat bought in 2017 but need to sell as I have a 15 months old son so need a bigger please. I have 75 years left on the flat and I emailed freeholder and see how much he wants for making it 90 years and he came back asking for 20K which is impossible for me to pay. The flat is 235K worth and ground rent is 100 per annum. Can you advice please?
@nuray3486
2 жыл бұрын
Many thanks in advance!!!
@SelfInvested
2 жыл бұрын
Hey there! I think you need to get professional legal advice on your situation. You can try the Leasehold Knowledge Partnership as well www.leaseholdknowledge.com/contact/ They are a charity and may be able to help you
@nuray3486
2 жыл бұрын
Thank you so much!
@mariao8359
3 жыл бұрын
Hi. Thanks for a great video. In your opinion, is it worth extending a lease on a property that has 87 years left if we're looking into sellling? Would it affect our sale price?
@SelfInvested
3 жыл бұрын
Possibly! An extended lease with zero ground rent is a more attractive and valuable proposition. It’s probably worth speaking to a surveyor about how much it will cost compared to the value that it will add
@paulevetts9771
3 жыл бұрын
thanks for explaining that. i have a short lease left was going to buy off the council they wanted 4.5k plus legal costs. i was pretty happy about that, i expected much more.would i be better off just extending now for 990 yrs?. or is freehold still going to be more sellable?.
@SelfInvested
3 жыл бұрын
Hi Paul! I would get legal advice if I were you, and possibly the advice of a lease enfranchisement surveyor. It's difficult to comment without knowing the specifics of your situation. I personally, however, would still prefer to have the freehold, as leasehold tends to be a lesser form of ownership. There was no mention in the announcement of no longer needing the freeholder's permission to make certain alterations, for example.
@paulevetts9771
3 жыл бұрын
@@SelfInvested good point. thanks for replying.
@wowwowwow185
3 жыл бұрын
i'm in this situation my lease is 69 years do i wait or extend now ,I was thinking o cashing some of my pension to extend my lease.. not sure what to do should i wait
@SelfInvested
3 жыл бұрын
Hi there! I think you need to get both legal and financial advice. It’s not clear how and when these changes will be implemented. From what I’ve heard, the abolition of marriage value may be one the the reforms made
@bettyboo1930
3 жыл бұрын
Thank you for this information. I currently have 70 years left on my lease, but I am finding it hard to sell the property. Would it be best to apply and pay for an extension or wait until the reform change? Thanks
@SelfInvested
3 жыл бұрын
Hi Betty, to be completely honest, I'm not sure. We don't know when and how these changes are going to be implemented. I've heard advice saying that if you have a short lease, it makes sense to extend because it's a depreciating asset, but others say wait. I think it would be best to speak to a solicitor and surveyor who specialise in lease extensions. Also, you could speak to the Leasehold Knowledge Partnership for free advice: www.leaseholdknowledge.com/advice/
@bettyboo1930
3 жыл бұрын
@@SelfInvested that’s great. Thanks for your prompt reply and advice. Much appreciated
@esssexboy
3 жыл бұрын
Will the reform benefit existing leaseholders of flats or just new builds ? Thanks
@SelfInvested
3 жыл бұрын
So as I understand it, the only changes that existing leaseholders will benefit from are the changes to lease extension length (to 990 years), marriage value and the online calculator for lease extensions and collective enfranchisement (buying the freehold)
@ayoubachlouj4406
3 жыл бұрын
Any update on the reform dates..thanks
@SelfInvested
3 жыл бұрын
Not just yet. Possibly won’t be anything significant to mention until early next year... I’ll make a video once there’s an update
@MrKamalben
3 жыл бұрын
Do you know when this is going to start?
@SelfInvested
3 жыл бұрын
Not certain, but I believe the changes will be implemented in phases, not all in one go. I need to do further research and make an update video - hopefully soon!
@MrKamalben
3 жыл бұрын
Thanks Because you are in the business I have 87 left for my flat will I wait until this changes or I have to apply for lease expansion now. Thanks brother
@1987kahil
3 жыл бұрын
Is ground rent different to service charge? I have a shared ownership property and I have staircased to 100% so my property has now automatically become a freehold. As I know it's only service charge I pay. Would there be any other charges when it comes to selling? Meaning just service charge and no ground rent, etc?
@SelfInvested
3 жыл бұрын
Ground rent is a cost associated with leasehold properties. It’s a cost that is usually paid to the freeholder for living in a property on land they own.
@debbiesoyemi2171
3 жыл бұрын
What about if you have a flat with a leasehold of already 999years as a new build. Does this mean the ground rent still applies unless you purchase the freehold ?
@SelfInvested
3 жыл бұрын
Having a 999year lease doesn’t necessarily mean there’s no ground rent. However, a number of developers are now selling flats with 999 year leases with zero ground rent. With existing leases, once they are extended (currently by 90 years) through the statutory route, ground rent becomes zero. So, you don’t need to buy the freehold to get rid of ground rent. However, I still think having the freehold is generally better than a 999 year lease with no ground rent
@Kadaf1
3 жыл бұрын
So if I own a leasehold with 110 years currently remaining , will these new laws allow me to extend to 990 years with zero ground rent ? Currently my ground rent is nearly £500 per year which increases every 10 years
@SelfInvested
3 жыл бұрын
Yes, you should be able to extend your lease by 990 years and reduce ground rent to zero, as long as you've owned your property for at least two years. Although, there are limited circumstances where you won't be able extend through the statutory route. Here's a video where I talk about the lease extension process in more detail: kzitem.info/news/bejne/mIxpx5WHkXx3aX4 As your ground rent is £500 and doubles every 10 years, it might be quite expensive because part of the calculation to work out the premium paid to the landlord, includes compensation for the ground rent they would've received over the remaining lease length (so 110 years in your case). However, with the changes it should be cheaper and fairer than it currently is. Hope you find this helpful!
@ryanmoore1280
3 жыл бұрын
@self-invested Question : Do existing leaseholders still continue to pay ground rent in 2021 as they did in the previous years ? Any changes to it ? please let me know. thanks.
@SelfInvested
3 жыл бұрын
Hi Ryan, I'm happy to answer you questions if I can! The changes to ground rent are being made to new leases, not existing. So if you were previously paying ground rent, you'll likely still be paying it until you extend your lease. Also, these changes to new leases are not law yet, they're expected to become law within the next 14 month. The changes to lease extensions are expected within the next 3 to 4 years.
@ryanmoore1280
3 жыл бұрын
@@SelfInvested thank you for reply. my remaining years on lease is 110 years. Do you suggest initiating lease extension now OR should I wait it out until the laws are made ? and then submit for extension 🙂
@SelfInvested
3 жыл бұрын
@@ryanmoore1280 I suggest getting professional legal advice tbh. If I had a lease with 110 years left, I’d probably wait for the changes to be implemented because there’s still quite long left on the lease.
@eco2hk774
3 жыл бұрын
@@ryanmoore1280 I reckon that you would still have to compensate enough to reflect landlords' legitimate property interests
@zulekhahafesji5868
3 жыл бұрын
My lease is 125 years from 1988. It is an ex local council flat. Should I wait for 3 to 4 years until it becomes a law or I extend the lease. Please advice me
@SelfInvested
3 жыл бұрын
Hey Zulekha! Sorry, but you're going to need to get professional legal advice on your specific situation. I can only speak generally. From what you've written, it appears you still have over 90 years on your lease, which makes me think you're in a good position for this change potentially. You can contact the Leasehold Knowledge Partnership (www.leaseholdknowledge.com/) for advice.
@138FrOsTy138
3 жыл бұрын
Would you recommend a cheap leasehold flat as a 'foot in the door' to property which I would plan to flip and upgrade to a bigger freehold house in a couple of years or just go straight for a house?
@SelfInvested
3 жыл бұрын
There are so many things to consider so I wouldn't be comfortable giving you specific advice. Generally, a freehold house is a more solid investment than leasehold flat. However, some leasehold flats are better than others. You can watch these videos for more info: freehold vs leasehold - kzitem.info/news/bejne/o2N9wJyHaYJla6w and new build vs older build - kzitem.info/news/bejne/0KGg2oSEinqVemU
@138FrOsTy138
3 жыл бұрын
@@SelfInvested thanks for the response I'll check them out!
@SelfInvested
3 жыл бұрын
@@138FrOsTy138 Let me know what you think!
@rayhan15243
3 жыл бұрын
Just to confirm, so if you want to extend the lease it will extend all the way to 990 years by default correct under the new legislation?
@SelfInvested
3 жыл бұрын
From what the government have announced, yes. But I'm sure if this change will be instantaneous. However, the press release did state "Today’s changes mean both house and flat leaseholders will now be able to extend their lease to a new standard 990 years with a ground rent at zero." If I were you, I would get legal advice before acting on this announcement.
@rayhan15243
3 жыл бұрын
Yes I will wait until they ratify these new reforms.
@Sky2theRim
2 жыл бұрын
why do leaseholds even exist? what monster came up with them? abolish them!! everyone deserves to be able to own their own home, its bad enough homes aren't affordable its worse that you can be screwed over by a leasehold. its just evil.
@SelfInvested
2 жыл бұрын
It’s a relic of the feudal system, which enabled lords to lease their land to the middle classes to build homes on it but retain ownership of the land - hence the term landlords. It’s an archaic system and should no longer exist.
@suerowe53
3 жыл бұрын
Thanx for the vid. There was talk of the 'Leasehold Pack Fee' was going t be capped at £200 do you know anything about that? Thanx
@SelfInvested
3 жыл бұрын
So, I did a quick search and found this, “Landlords are required to produce a leasehold pack whenever a leasehold home is sold. The packs contain information for the homebuyer on the management of the freehold, ground rent and service charges, buildings insurance, and any disputes relating to the property.” I think landlords sometimes use this as an opportunity to make more money on leaseholders...
@suerowe53
3 жыл бұрын
@@SelfInvested Thanx for your speedy reply! Yes, exactly...I have three apartments I want to off-load and it's going to cost me £600 in solicitors fees, £1,500 in estate agent fees and £600 in Leasehold Packs!!! That's for EACH apartment! All of it is a total rip-off! Years ago you could do your own conveyancing but they don't allow it now...jobs for the boys (or girls) I say (:o!!!!
@SelfInvested
3 жыл бұрын
@@suerowe53 Ouch! Let’s hope that is a change that is made. It was mentioned in the initial press release, but once there is more info, I’ll make another video!
@suerowe53
3 жыл бұрын
@@SelfInvested I'll look forward to it...but alas I fear it will be too late for me.....(:o(
@SelfInvested
3 жыл бұрын
me also! I extended my lease in 2019 :’(
@aldj2792
3 жыл бұрын
Is this proposed for all the leaseholder I try to mean whether it is applicable for council leaseholder ? Thank you.
@SelfInvested
3 жыл бұрын
As far as I’m aware, this will apply to ex council leaseholders as well...but I will make another video on this when there’s more details...
@aldj2792
3 жыл бұрын
@@SelfInvested thank you. I will be waiting for your next video.
@kodiac4231
3 жыл бұрын
Hi mate im looking into buying my first house and I have just bought the title deeds to a property I have just viewed. On Rightmove, it states it is freehold however on the land registry it does show as a leasehold but the term is for 999 years with peppercorn rent. Does this mean for the entire term of 999 years or could there be hidden clauses? I was also wondering would it be possible for me to just buy the freehold and would this make me the owner of the land as well, if so in this case how much would you expect the cost of the freehold to be to buy out right.
@SelfInvested
3 жыл бұрын
It’s it definitely a house and not a flat? If the estate agent is stating it’s a freehold and it’s leasehold, that sounds like false advertising and you should raise it with the estate agent. If it is leasehold you should read the lease for yourself and get professional legal advice on it. It’s difficult to comment on whether you’d be able to buy the freehold and how it would cost without seeing the lease. Have you employed a conveyancer or solicitor yet?
@kodiac4231
3 жыл бұрын
@@SelfInvested Yeah it is a house which is why I can not figure out why it would be a leasehold. I have submitted an offer subject to contract and survey. I am a first-time buyer so all this is very new to me but would a solicitor answer the questions I have in regards to the lease and what charges they may be?
@SelfInvested
3 жыл бұрын
@@kodiac4231 They should be able to advise on the term, but you would need a surveyor that specialises in enfranchisements to advise you on cost. You should read the lease for yourself as well and question anything you’re unsure about
@nawazali93
3 жыл бұрын
Great video, I’ve learnt so much from this. I live in leasehold property, do you think the leasehold company will automatically write to everyone, to extend the lease or is there going to be charges for the extension.
@dodahspeak
3 жыл бұрын
For reasons of having to remortage we are going thru the process now of having to extend our lease which is down to 66 years. The freeholder, The Anchor Group, a non profit national retirement apartment provider of both rental and purchase properties, used to charge a flat rate of £5000 to extend a lease. We have just found out that in 2019 they increased the charge by nearly 300% to around £14000! Initial inverstigation reveals that this appears to have been done by stealth and one wonders why they did this at a time that the Government study was being conducted in order to bring these types of costs down. "Making Hay while the sun still shines" springs to mind.
@SelfInvested
3 жыл бұрын
Sorry to hear that, David. Have you sought legal advice? You should speak to the Leasehold Knowledge Partnership to what help they can offer, if any - www.leaseholdknowledge.com/
@SelfInvested
3 жыл бұрын
Thank you! Not sure I understand the question. It's unlikely freeholders will contact leaseholders to extend their leases because, generally, the longer leaseholders leave it, the more freeholders can charge to extend their leases. How long do you have left on your lease?
@nawazali93
3 жыл бұрын
@@SelfInvested I have 90 years left on the lease
@SelfInvested
3 жыл бұрын
@@nawazali93 Not too bad! Do you plan to try and wait for the changes before extending?
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