Martin Roberts highlighted a significant issue with a property featured on Homes Under The Hammer.
The residence, located in Hayes, West London - not far from Heathrow Airport - was set to go under the hammer. Although it wasn't conveniently close to Tube or train stations, the maisonette was near a park and had access to various amenities.
On offer was a first-floor maisonette boasting two bedrooms, with a guide price of £110,000, which presenter Jacqui Joseph noted appeared quite modest for the locale. She began by examining the exterior space and garage, finding potential in what she saw.
Initially, the property impressed with its own entrance leading to the upper level, featuring high ceilings and an additional window in the stairwell. It also came with central heating that required a slight update.
Jacqui praised the sizeable reception room for its abundant natural light, as well as the spacious bathroom, suggesting that opening it up could create even more room. She found the kitchen units reasonably good, deeming the kitchen functional, reports .
Yet, Jacqui and Martin soon delivered a cautionary message to the audience regarding the maisonette. She informed them: "Now, one thing to be aware of, this place comes with a short lease, which might explain that relatively low guide price.
"In fact, there are only 43 years remaining on that lease. A Section 42 notice has already been served and it means you won't have to wait the usual two years when requesting to extend the lease. That's why it's always important to read the legal pack."
Martin then highlighted the importance of a lengthy lease to lenders. He added: "The cost of extending a short lease can be tens of thousands of pounds, which is why it's important to check those legal packs."
Subsequently, the team revisited the house, with the buyers admitting that the protracted legalities were the most time-consuming part of the process. Although the lease had not yet been extended, they remained eager to sort it out.
The couple carried out only essential improvements to make the house habitable, taking a wait-and-see approach regarding the lease extension. Should the extension come through promptly, their total investment in the property - including all building costs and materials - would stand at £277,500.
Wrapping up the segment, Martin shared: "They've had to compromise on some elements of this project to get it to bring in an income as soon as possible," while an estate agent valued the property at approximately £320,000. Nonetheless, the couple's strategy was to rent out the place as a way to add to their pension pot.
*Homes Under The Hammer airs on BBC One at 11am weekdays.
