LONDON’s cheapest flat is going under the hammer for just £20,000 – but potential buyers should read the fine print carefully before making an offer.
Located in the stunning suburb of Hampstead Garden, north west of the city centre, the two bed property has plenty of space inside and a balcony to give extra space.
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The decision to list it at such a low price may seem confusing at first given the average cost of a home on Falloden Way is a whopping £540,012.
But there’s a big catch.
Only eight years remain of his 99-year lease.
Extending the lease – if such a thing is even possible – ends up costing the new owner more than the price of the house.
Just finding out if the lease can be renewed could also cost thousands in legal fees.
And if it is not renewed, the property becomes a property again – with ownership of the building reverting to the original owner.
This means that the new owner needs to be prepared with lots of extra money and a very good lawyer.
But for those up to the challenge, the apartment could be an excellent purchase.
The property could use some refurbishment but is otherwise easily moveable into a rental property. Current tenant pays £1,200 per month.
Another dirt cheap house in London with exactly the same problem was auctioned off in March.
The home in Leyton, east of the capital, was in an even worse situation with just 12 months left on its 60-year lease.
Most lenders will not mortgage a leased property if the initial lease is less than 70 years, meaning the property must have been in the same hands for many years.
There is no fixed fee for a lease extension.
Instead, everyone in the same position must obtain a professional evaluation before a number is calculated.
FRIGHTEN
Additional fees for solicitors and experts add up to over £5,000.
Those with plenty of money looking to avoid a lease headache could be tempted by a £5million mansion in the New Forest with a very fun surprise.
This historic Lymington home has two bathrooms, a game room and a slide between the first and second floors.
TV’s Doc Martin’s Cornish two-bed house is also on the market for £1.25million.
The current owners have used the Grade II listed Fern Cottage as holiday accommodation between filming, charging an average of £355 per night.
It features a stunning stone fireplace, dining room with a wood burning stove and pantry.
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