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Selling Lease hold Property with a Short Lease

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davidk65 | 17:53 Sat 22nd Sep 2012 | Property
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The land on which my house is built is lease hold and the lease has some 90 years left to run before it expires.
I have made a will and when I am die, the house and everything else I own will go to my sons.
Because I am approaching 80 years of age and don't want to spend what little cash I have to buy the lease I have suggested that the sons might like club together giving me the money to buy the freehold in effect for them. This suggestion of mine has not been taken up by the family. They have their own houses and will undoubtedly sell my house when I am gone.

With regards to the short lease, what kind of difficulty will be encountered by the family when the come to sell (maybe in 10 years time)?

In the event of my death, could the family buy the lease?

If I was to go into care and the property has to sold to cover care costs, would the short lease have any bearing on that situation.

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90 years is not too bad. The usual proviso for anyone buying the property is that mortgage lenders tend to want at least 30 years left on a lease after the mortgage is paid off. So if your children wanted to sell the property in say 10 years time, and the buyer takes out a 30 year mortgage there would be 50 years left in the lease which is okay, however, the problem...
18:05 Sat 22nd Sep 2012
When your family inherit it will be up to them whether they sell at a lower price with short lease, pay to get the lease extended (if leaseholder agrees) or purchase the lease. If you have to sell for care fees you will have to accept the valuation at the time and if that means there is nothing left for your family that is something they will have to accept.
90 years is not too bad. The usual proviso for anyone buying the property is that mortgage lenders tend to want at least 30 years left on a lease after the mortgage is paid off. So if your children wanted to sell the property in say 10 years time, and the buyer takes out a 30 year mortgage there would be 50 years left in the lease which is okay, however, the problem would arise with the next buyer unless the lease was extended.
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Thank you both for your comments . They are very helpful.
Thank you again

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