The benefits of a 999 year lease

A 999-year leasehold provides a very long-term leasehold interest in a property, which is close to being equivalent to owning the property outright whilst maintaining the existing covenants contained within the lease.

Here are some of the potential benefits of a 999-year leasehold to leaseholders following a freehold purchase of the building:

1. Security of tenure: A 999-year lease provides almost permanent ownership of the property, offering peace of mind to the leaseholder.
2. Investment value: A 999-year leasehold property has a greater resale value than a shorter-term leasehold property, which may be more attractive to potential buyers and investors.
3. Increased mortgageability: Lenders are more likely to approve mortgages for leaseholders with a 999-year leasehold, which means it may be easier to obtain financing.
4. Greater control over the property: With a 999-year leasehold, leaseholders have greater control over the property, including making improvements and modifications to the property without requiring consent through lengthy and expensive processes often put in place by institutional or investor freeholders.
5. Reduced ground rent: Ground rent for a 999-year leasehold is typically set at a nominal amount, often a peppercorn per year, which is an attractive prospect for leaseholders.
6. Protection against rising costs: A long lease provides a degree of protection against future increases in ground rent and service charges, which can be an issue with shorter-term leases.

Overall, a 999-year leasehold can provide leaseholders with a secure and long-term interest in their property, which can increase its value and make it more attractive to potential buyers or lenders.