If you want to avoid the consequences associated with leasehold scandal then, you should be able to watch out the common things when purchasing a leasehold property to avoid any potential issues:
Regardless of the hefty amount you pay and the duration you own the property—you wouldn’t be declared as the owner of the property. Rather than claiming the ownership of the property, you would be rather dubbed as the long-term tenant of the property.
When investing in a leasehold scandal property, you should settle down with a leasehold property with a duration of more than 100 years remaining on the contract. If the duration of the lease is less than 80 years, and it is available at an affordable cost then, you would be making a huge mistake. Don’t fall for the affordability of the property, and opt for a land with a lease of more than 100 years.
If you have managed to invest in a leasehold property with a significant duration, you need to remember that the lease wouldn’t last for a long time and you would be required to request for an extension in the long run.
The stipulations regarding a leasehold property could be onerous and exorbitant; therefore, we urge you to check the conditions on your leasehold before settling down with the contract.
While, you would be required to pay for the ground rents as a part of the contract, you should avoid paying ridiculously overpriced ground rents to the freeholder of the property. You should request for lenience on the overly exorbitant ground rents.