If a property freehold would be valued at say €500k,does the fact that the property is leasehold and the lease expires in 2034 make a difference to the property value?
This is tricky and you need to consult a solicitor.
Some leaseholds are basically equal in value to freeholds. It depends on the title. Say a 999 year leasehold or one where there is a low ground rent, where you can actually buy out that ground rent etc they would be equal in value.
But what you seem to be talking about is what most people consider a proper lease. Where you are not actually buying a property at all but instead buying the lease.
I think its a low ground rent,long lease type.But obviously even some long leases come to an end,and I believe there are complications in even establishing who now owns the lease.
I think its a low ground rent,long lease type.But obviously even some long leases come to an end,and I believe there are complications in even establishing who now owns the lease.
The ground rent should definitely be bought out on this one.
Technically it should be difficult to sell this house as there is under 70 yrs to run on the lease.
Also if you do nothing until there is less than 15 yrs left to run on the lease it will cost more to buy out.
Right now it will cost, as purchase price , approx 20 x annual ground rent. There will be ancillary costs but definitely this needs to be bought out before 2019