Last week it was Scotland v England (or Rob D v Rob B) at the Meetups as Rob D ventured to Edinburgh to our brilliant Meetup there, led by Karen & Bill. Rob B took over the helm at the King's Cross Meetup and both locations were very busy. Rob D spent a bit more time putting the finishing touches to his new book 'How to be a Landlord' but we'll tell you more about that over the next couple of weeks. Now on to this week's big topic - all about lease hold. Something that puts some people off - and fear often comes from lack of knowledge. So let's get educated. What is leasehold? You don’t own the land - you lease the land for a period of time. At the end of that time it reverts back to the freeholder if you don’t renew Typical lease terms are anything from 100 to 999 years You pay ground rent every year as payment for the lease The lease has conditions about what you can and can’t do Most common for flats, increasingly new build houses too What you need to know Lease extension is always possible and follows a set formula - BUT Gets more expensive with under 80 years left - marriage value Under about 60 years becomes hard to get mortgage Things to check before you buy: Length of remaining lease term Ground rent, and if it increases after period of time Any restrictions - like not being able to sublet! Service charge is a bit different but this is important too Get your solicitor to look over the lease in detail How to extend: Extension is always for an additional 90 years, with no ground rent payable for this new 90 years Get a specialist valuer to value the extension and a solicitor to serve notice on the landlord, offering terms and how much to pay Landlord has 2 months to respond, either accepting or stating their own terms Negotiate. After 2 months either party can apply to tribunal for decision Wait for tribunal decision, which is final Can take a year or more from start to finish by the time you’ve waited for various deadlines If it’s close to 80 years and you’re buying, get the vendor to start the process and transfer it to you because you can’t do it in first 2 years How to make money from leases: Buy properties with short leases and extend them. Will need to be cash buy or bridging until you’ve done the extension. Make sure there’s a profit even after the extension costs. Buy freeholds. Ground rents give an income stream. News story: Household savings ratio falls to record low. This is a bit worrying in itself, but we're particularly concerned given that mortgages are cheaper than ever. What will happen when the cost of mortgages goes up? Take a look at this story here. Resource of the week This week's resource of the week is Pocket Explore. This is an extension of a previous ROTW Get Pocket. Explore Pocket takes this a bit further and helps you find high quality blogs on any given subject. Check it out. Continue the conversation over in the forum Have you invested in a leasehold or have you been put off? Let us know your take on this important subject and join the conversation over in the forum! If you enjoyed The Property Podcast, please leave a review on iTunes Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air. If you’d like to hear your name on the show, leave us a review on iTunes here. Not sure how to leave a review? This video shows you how to review and subscribe on iTunes. See omnystudio.com/listener for privacy information.

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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