Managed to sell my leasehold flat earlier this year. It had a doubling-every-20-years Ground Rent clause, which would exceed £1000pa (flat was in London). Buyer's solicitor asked for deed of variation, which I know from watching your previous video can be incredibly costly/time consuming. Thankfully they accepted an indemnity policy costing about £70. Other costs, solicitor was about £1500 (many quotes were much higher, some refused the work). Management pack about £400. Online agent £300. Luckily there were no other large unexpected costs. I would never touch leasehold again and would never recommend it. There are so many issues, costs and worries to deal with that you seemingly have no control over. I was also stuck in limbo for 2+ years waiting for the relevant cladding/fire safety remediation/certification before I could sell. Total nightmare. Thanks for shining a light on the reality of leasehold.
It sounds like you've been on a journey with your flat, especially awaiting cladding, but huge congrats for selling and getting out! SO pleased they accepted an indemnity and that they are still being accepted by lenders today, the cost saving is incredible. Thanks for sharing your experience :)
I had the same situation regarding thr ground rent deed of variation. To keep the buyer interested i had to knock 5 grand off the asking price. Along with solicitor fees, estate agent fees and other nonsense that cropped up it cost me around 10 grand to sell 😕 its such a scum bag business
Thank you so much for this video. I’m sure that selling any property is riddled with complexities, but the issues with your leasehold sound very difficult, expensive and time-consuming! Glad you managed to get it sold.
I sold my old free hold flat last year! No management company made it "easier" to sell, however also meant the condition of the building was sub-prime and took a big hit on the value of the property.
A lease is no better than renting in fact in many ways worse since you have to pay the owner the value of the property up front and THEY STILL OWN IT not you. Never understood why anyone would consider leasehold its a CON
I have been asked by my new solicitor to pay for LPE1 enquiries twice. 1 for the management company and 2 for the company dealing with the ground rent. I'm not sure if this is right because my previous solicitor asked me to pay for only 1 LPE1 enquiries from the management company.
I had the exact same thing! Some people say you shouldn’t have to do this but I felt like I had no choice as the buyers solicitors needed it for the sale to progress, it’s the worst!! So sorry you’re going through this now too, sometimes this seems to be the case as the managing agents actually don’t have anything to do with the ground rent
I appreciate your video, as a first time buyer to be honest, I want a flat I can live for a couple of years then put it up for service accommodation. Would you still recommend I go for it as flats are better off for that line of business although I’m aware of the hideous fees and yearly increase in service charge.
Yes - generally flats do well on a buy to let basis so can be a good investment opportunity if in the right area. You're already mindful of looking out for service charges etc so good luck with your search!
Thank you! I later realised in my lease I should have told them, I think it’s because you need permission for a for sale sign to go up on the property! Ridiculous - but I didn’t get in any trouble 😅
@@NicoleSage thanks for the reply, I also bought in 2017 and it seemed to have been a year where prices hiked up, so now looks like I may make a loss. I will let my freeholder know im selling it. Keep up the good work, your channel will continue to grow
But surely there are many - maybe even the (silent) majority of leaseholders who are ... let's say content with their deal? Obviously most people would prefer to own their property outright, but let's be realistic - that is not always possible for many. And these videos (and comments) makes it seem like all leasehold deals are basically a scam. It's commendable to want to help, inform and warn people about potential pitfalls, but I'm sure there are some good leasehold deals to be had - or at least better than the only other option for many which is renting? I've recently had an offer on a nice leasehold 1 bed flat accepted (£110k), neat double story buildings, 4 flats/block, nice area, close to work (no frustrating daily commute) built in 2006, mostly older owner residents, 133yr lease, ground rent £44/6months, £999 service charge ... I'm single, in my fifties, no kids (actually no family in this country), spend most of my time at work - which I enjoy ... doesn't seem like a CON to me ... well I hope not. After watching some of these videos and reading comments I'm having some serious doubts. Not sure how to word this but the internet usually leaves one with the impression that the extreme cases are the norm... 'normal' not going to attract many views I suppose.
We all have different experiences with leasehold, I am sharing mine to highlight areas to look for so others don't get caught out like I did as it can be an extremely stressful and expensive place to find yourself in. There are good leasehold situations out there which I have heard from people commenting on my other videos, it's mainly those being operated by a large freeholder company in England when it can become complex and expensive. Congrats on having your offer accepted, the terms sound reasonable, if you can just do some research on the freeholder beforehand it will put your mind at rest, looking at reviews etc. Just be mindful that service charges do rise year on year so have a look at the last 2 years of accounts so you can see how much they increase by, going in with eyes wide open is the best way. I would join the national leasehold campaign group on Facebook and you can search in there the freeholders name, you'll also see lots of people with their different experiences within there, good luck.
@@NicoleSage Thanks so much for your response and advice. Sorry if there was an element of "shooting the messenger" in my first comment. The "consumer protection laws" in this country seem so strong that I kinda just assumed that will be the case when buying a leasehold as well - I realise now that was a bit naive of me. Although I do still feel that the internet tends to ... maybe polarize things/people, as the silent majority are usually .. well, silent (haven't heard anyone raving about leasehold though :) Anyway, thanks again.
Thank God u finally get rid of the leasehold, but I think leasehold is relatively cheaper and in most cases with shared common areas. Thus, it is serving its purpose. Of course, I would rather move to an area where I can afford a freehold cos simply u are paying for a leasehold and at the end u own nothing still amazed me
So glad I was able to get out when I could! I think most people do love their flats, it's the system that surrounds it that is super frustrating. I agree - I don't think I ever truly realised that until I started learning about forfeiting your lease etc... scary!
We are buying a leasehold flat and after 5k spent in lawyer fees and survey, we are waiting on the deed of variation, if the freeholder won't respond we will definitely back off! sorry for the seller, but also for us as it would be a very expensive lesson.....
Oh gosh, so sorry to hear this, I hope the seller is incurring the deed of variation of its accepted. Exactly - hard situation for both parties, but if you have to walk away from it, you’ve already had a taste of what it can be like and it will be a great escape! Best of luck whatever happens!
Leasehold is a racket that needs to be outlawed. You never actually own the property either - you just own the lease. Before the government extended all leases to 999 years, your lease would expire and your property would be worthless unless you paid £000s to renew it! Utterly disgusting behaviour. I’ve had my fingers burnt and would advise anyone to steer WELL clear of leasehold properties, even if it means waiting longer to buy a house.
It's madness, I always thought I 'owned' it but had a wake up call when I realised it was literally just a lease I had. Totally agree - just save that bit longer, it's worth saving yourself from the stress and money you'll lose from having a leasehold
Managed to sell my leasehold flat earlier this year. It had a doubling-every-20-years Ground Rent clause, which would exceed £1000pa (flat was in London). Buyer's solicitor asked for deed of variation, which I know from watching your previous video can be incredibly costly/time consuming. Thankfully they accepted an indemnity policy costing about £70. Other costs, solicitor was about £1500 (many quotes were much higher, some refused the work). Management pack about £400. Online agent £300. Luckily there were no other large unexpected costs.
I would never touch leasehold again and would never recommend it. There are so many issues, costs and worries to deal with that you seemingly have no control over. I was also stuck in limbo for 2+ years waiting for the relevant cladding/fire safety remediation/certification before I could sell. Total nightmare.
Thanks for shining a light on the reality of leasehold.
It sounds like you've been on a journey with your flat, especially awaiting cladding, but huge congrats for selling and getting out! SO pleased they accepted an indemnity and that they are still being accepted by lenders today, the cost saving is incredible. Thanks for sharing your experience :)
I had the same situation regarding thr ground rent deed of variation. To keep the buyer interested i had to knock 5 grand off the asking price. Along with solicitor fees, estate agent fees and other nonsense that cropped up it cost me around 10 grand to sell 😕 its such a scum bag business
Thank you so much for this video. I’m sure that selling any property is riddled with complexities, but the issues with your leasehold sound very difficult, expensive and time-consuming! Glad you managed to get it sold.
Absolutely - I don't think the process is ever simple or affordable whatever the property! Thank you for watching :)
I sold my old free hold flat last year! No management company made it "easier" to sell, however also meant the condition of the building was sub-prime and took a big hit on the value of the property.
Congrats on getting out of leasehold! Sounds like you had your own hand of issues, they don’t make it easy for us 😅
Thank you so much for sharing the information.
Glad it was helpful, thanks for watching!
A lease is no better than renting in fact in many ways worse since you have to pay the owner the value of the property up front and THEY STILL OWN IT not you. Never understood why anyone would consider leasehold its a CON
100% agree, you literally don't own anything but you pay for the privilege of having a lease
Thanks for the information I will be selling my leasehold hopefully next year.omg.
Best of luck!! 🫶🏻
I have been asked by my new solicitor to pay for LPE1 enquiries twice. 1 for the management company and 2 for the company dealing with the ground rent. I'm not sure if this is right because my previous solicitor asked me to pay for only 1 LPE1 enquiries from the management company.
I had the exact same thing! Some people say you shouldn’t have to do this but I felt like I had no choice as the buyers solicitors needed it for the sale to progress, it’s the worst!! So sorry you’re going through this now too, sometimes this seems to be the case as the managing agents actually don’t have anything to do with the ground rent
I appreciate your video, as a first time buyer to be honest, I want a flat I can live for a couple of years then put it up for service accommodation.
Would you still recommend I go for it as flats are better off for that line of business although I’m aware of the hideous fees and yearly increase in service charge.
Yes - generally flats do well on a buy to let basis so can be a good investment opportunity if in the right area. You're already mindful of looking out for service charges etc so good luck with your search!
Hi there, did you or do you need to tell the freeholder when you put your leasehold flat on the market?
Many thanks, great info videos
Thank you! I later realised in my lease I should have told them, I think it’s because you need permission for a for sale sign to go up on the property! Ridiculous - but I didn’t get in any trouble 😅
@@NicoleSage thanks for the reply, I also bought in 2017 and it seemed to have been a year where prices hiked up, so now looks like I may make a loss. I will let my freeholder know im selling it. Keep up the good work, your channel will continue to grow
I guess it's the rules and regs, when I bought mine it was so easy. I am now just waiting to extend the lease... I wondet what will happen.
Best of luck with extending your lease!!
But surely there are many - maybe even the (silent) majority of leaseholders who are ... let's say content with their deal? Obviously most people would prefer to own their property outright, but let's be realistic - that is not always possible for many. And these videos (and comments) makes it seem like all leasehold deals are basically a scam.
It's commendable to want to help, inform and warn people about potential pitfalls, but I'm sure there are some good leasehold deals to be had - or at least better than the only other option for many which is renting?
I've recently had an offer on a nice leasehold 1 bed flat accepted (£110k), neat double story buildings, 4 flats/block, nice area, close to work (no frustrating daily commute) built in 2006, mostly older owner residents, 133yr lease, ground rent £44/6months, £999 service charge ... I'm single, in my fifties, no kids (actually no family in this country), spend most of my time at work - which I enjoy ... doesn't seem like a CON to me ... well I hope not. After watching some of these videos and reading comments I'm having some serious doubts.
Not sure how to word this but the internet usually leaves one with the impression that the extreme cases are the norm... 'normal' not going to attract many views I suppose.
We all have different experiences with leasehold, I am sharing mine to highlight areas to look for so others don't get caught out like I did as it can be an extremely stressful and expensive place to find yourself in. There are good leasehold situations out there which I have heard from people commenting on my other videos, it's mainly those being operated by a large freeholder company in England when it can become complex and expensive.
Congrats on having your offer accepted, the terms sound reasonable, if you can just do some research on the freeholder beforehand it will put your mind at rest, looking at reviews etc. Just be mindful that service charges do rise year on year so have a look at the last 2 years of accounts so you can see how much they increase by, going in with eyes wide open is the best way. I would join the national leasehold campaign group on Facebook and you can search in there the freeholders name, you'll also see lots of people with their different experiences within there, good luck.
@@NicoleSage Thanks so much for your response and advice. Sorry if there was an element of "shooting the messenger" in my first comment. The "consumer protection laws" in this country seem so strong that I kinda just assumed that will be the case when buying a leasehold as well - I realise now that was a bit naive of me.
Although I do still feel that the internet tends to ... maybe polarize things/people, as the silent majority are usually .. well, silent (haven't heard anyone raving about leasehold though :) Anyway, thanks again.
It's always been expensive to sell, that's why so many people extend their houses instead of moving.
True! Unfortunately not an option with flats in blocks /buildings 😭
Thank God u finally get rid of the leasehold, but I think leasehold is relatively cheaper and in most cases with shared common areas. Thus, it is serving its purpose. Of course, I would rather move to an area where I can afford a freehold cos simply u are paying for a leasehold and at the end u own nothing still amazed me
So glad I was able to get out when I could! I think most people do love their flats, it's the system that surrounds it that is super frustrating. I agree - I don't think I ever truly realised that until I started learning about forfeiting your lease etc... scary!
We are buying a leasehold flat and after 5k spent in lawyer fees and survey, we are waiting on the deed of variation, if the freeholder won't respond we will definitely back off! sorry for the seller, but also for us as it would be a very expensive lesson.....
Oh gosh, so sorry to hear this, I hope the seller is incurring the deed of variation of its accepted. Exactly - hard situation for both parties, but if you have to walk away from it, you’ve already had a taste of what it can be like and it will be a great escape! Best of luck whatever happens!
I have previously opened leasehold flats. Thankfully now sold, never again would I own them, you get ripped off in so many ways
Well done for getting out!! Agreed - worst system ever
OUCH !
😬😭
Leasehold is a racket that needs to be outlawed. You never actually own the property either - you just own the lease. Before the government extended all leases to 999 years, your lease would expire and your property would be worthless unless you paid £000s to renew it! Utterly disgusting behaviour.
I’ve had my fingers burnt and would advise anyone to steer WELL clear of leasehold properties, even if it means waiting longer to buy a house.
It's madness, I always thought I 'owned' it but had a wake up call when I realised it was literally just a lease I had. Totally agree - just save that bit longer, it's worth saving yourself from the stress and money you'll lose from having a leasehold