What does a 100 year lease mean?

What does a 100 year lease mean?

So if you were to buy a flat with a lease of 100 years you would have the right to live in it for the next hundred years. If you chose to sell the lease in three years’ time, say, the next owner of the lease would have the right to live in the flat for 97 years.

How long does a leasehold property usually last?

A lease is normally granted for a period 99 or 125 years, but that would have been to the original owner of the flat, perhaps ~30 years ago. The crucial question for you is how much of the lease remains when you take ownership?

What happens when you buy a leasehold flat?

If you buy a leasehold flat – and nearly all flats are leasehold – you are buying the right to live in the flat for the number of years left on the lease. So if you were to buy a flat with a lease of 100 years you would have the right to live in it for the next hundred years.

What happens if I buy a flat with a 100 year lease?

Who is the freeholder in a leasehold property?

The freeholder leases the property to the leaseholder. The leaseholder typically lives in the property and has a right to use it in accordance with the terms (known as clauses or lease covenants) set out in the lease.

What’s the average term of a leasehold flat?

The majority of residential leases used to be for a term of 99 years, but more recently leases on modern purpose-built flats have been for 125 years or longer. Most leases on ex-local authority flats are also for 125 years. The value of a leasehold flat diminishes as the lease gets shorter.

So if you were to buy a flat with a lease of 100 years you would have the right to live in it for the next hundred years. If you chose to sell the lease in three years’ time, say, the next owner of the lease would have the right to live in the flat for 97 years.

If you buy a leasehold flat – and nearly all flats are leasehold – you are buying the right to live in the flat for the number of years left on the lease. So if you were to buy a flat with a lease of 100 years you would have the right to live in it for the next hundred years.

How long is lease on ex local authority flat?

Most leases on ex-local authority flats are also for 125 years. The value of a leasehold flat diminishes as the lease gets shorter. There are a number of published graphs that show how the value of a flat reduces over the years and these are known as ‘Graphs of Relativity’.