Jump to content
House Price Crash Forum
Sign in to follow this  
alexski

Leasehold - Rough Cost To Purchase Freehold

Recommended Posts

Hi,

I've seen a house I was thinking of buying but have found out its leasehold. I don't like the idea of a lease, although have no real reason why other than the sense of ownership. Any ideas as to a rough ball-park figure for the cost of buying the freehold (inc. both parties solicitor's fees)? The lease is 999 years with 950 left and ground rent at £2 a year.

Thanks

Share this post


Link to post
Share on other sites

Hi,

I've seen a house I was thinking of buying but have found out its leasehold. I don't like the idea of a lease, although have no real reason why other than the sense of ownership. Any ideas as to a rough ball-park figure for the cost of buying the freehold (inc. both parties solicitor's fees)? The lease is 999 years with 950 left and ground rent at £2 a year.

Thanks

Share this post


Link to post
Share on other sites
Hi,

I've seen a house I was thinking of buying but have found out its leasehold. I don't like the idea of a lease, although have no real reason why other than the sense of ownership. Any ideas as to a rough ball-park figure for the cost of buying the freehold (inc. both parties solicitor's fees)? The lease is 999 years with 950 left and ground rent at £2 a year.

Thanks

Answer: sod all. I forget the precise details but there's a formula to work it out or something.

There are advantages of leases though as you have covenants to enforce against neighbors and the landlord.

Share this post


Link to post
Share on other sites
Answer: sod all. I forget the precise details but there's a formula to work it out or something.

There are advantages of leases though as you have covenants to enforce against neighbors and the landlord.

Yes and with a lease that long i wouldnt bother.Even leases with 70 years on 3 bed semis are around 3k.Those are worth buying sometime before 60ish years IMO.

Share this post


Link to post
Share on other sites

With ground rent of £2 and 950 years on the lease the freehold is going to be peanuts and I suspect won't be available to buy... I suspect this is a new build and as such devlopers often package up these freholds and sell them off... they are quite a specialised investment... the freeholder can have the right to organise the buildings insurance (which they can quite legitamently make a turn on) and equally where buildings have development potential (eg internal parts to amalgate into flats, or roofs to develop ) then there can be a pay off down the line and of course they are sometimes bought by management companies who then manage the building charging a fee for doing so (again within reason) which in central london is around £200-£400 per flat.

I may be wrong but in my mind it would be unusual for a devloper of a relatively new building to sell of shares int he freehold to leaseholders when they develop the building and if this is after initial sale then its likely the developer has already sold to a company who won't want to sell..... I have never come accross a situation where one flat has bought its own share of the freehold, and I think I am right in saying you cannot with more modern own the freehold outright to your flat, iots only ever share of freehold.

Share this post


Link to post
Share on other sites
Hi,

I've seen a house I was thinking of buying but have found out its leasehold. I don't like the idea of a lease, although have no real reason why other than the sense of ownership. Any ideas as to a rough ball-park figure for the cost of buying the freehold (inc. both parties solicitor's fees)? The lease is 999 years with 950 left and ground rent at £2 a year.

Thanks

As others have suggested it won't be much. Maybe just a couple of grand at most.

Worth buying though as otherwise you may need their permission to extend, which will take time and expense to sort out.

You have the right to buy the freehold and can go to a tribunal if they start being awkward.

Share this post


Link to post
Share on other sites
As others have suggested it won't be much. Maybe just a couple of grand at most.

Worth buying though as otherwise you may need their permission to extend, which will take time and expense to sort out.

You have the right to buy the freehold and can go to a tribunal if they start being awkward.

If its a house then he may well have the right to buy the freehold... in terms of cost I'd be very surprised if the marriage value was £2,000... I'd expect your solicitors fees to cost more than the assessed value.

Don't think however that buying the freehold will automatically give you the right to do as you please subject to the laws of the land and planning etc..... there may well be covenants in the title deeds forbidding extensions for instance or controlling the outside colour of the house or whatever... its a common misconception that freehold means unrestricted ownership... it doesn't.

Share this post


Link to post
Share on other sites

Go to www.lease-advice.org/ as there are criteria you need to meet before you can buy the freehold.

As I have said before from my own experience, do not touch leasehold at all because when things go bad they really go bad.

Get a place that is freehold, because then you have no one telling you what you can and can not do and if something needs doing to the property you can save for it because with leasehold they can just give a figure and you have to pay it within the time limit they give. (doesn't matter if you can afford it or not!!!)

loz

Share this post


Link to post
Share on other sites
Answer: sod all. I forget the precise details but there's a formula to work it out or something.

There are advantages of leases though as you have covenants to enforce against neighbors and the landlord.

Don't listen to advice on here. Go to a surveyor and he will work out the capital value after reviewing your lease including any onerous covenants etc. It may be worth it, it may not. 999 year is common and is considered freehold for all intents and purposes, including capital value which is nominal amount in a lot of cases, especially with a peppercorn ground rent like you have. It's nice to hold the fee simple but not necessary in most cases.

Tom MRICS.

Share this post


Link to post
Share on other sites
As others have suggested it won't be much. Maybe just a couple of grand at most.

Worth buying though as otherwise you may need their permission to extend, which will take time and expense to sort out.

You have the right to buy the freehold and can go to a tribunal if they start being awkward.

No you don't necessarily have the right to buy hence my advice to see a fellow surveyor. Lands tribunal are there to act in an arbitration capacity but they are not the be all and end all. The House of Lords usually is as far as land disputes are concerned, including most planning matters but most of the posts on this thread are guff.

Share this post


Link to post
Share on other sites
No you don't necessarily have the right to buy hence my advice to see a fellow surveyor. Lands tribunal are there to act in an arbitration capacity but they are not the be all and end all. The House of Lords usually is as far as land disputes are concerned, including most planning matters but most of the posts on this thread are guff.

I appreciate your professional qualifications, but assuming they have lived in the property for the required length of time, would there be more than a 1% chance that he couldn't buy the freehold, bearing in mind this is a house, not a flat?

In any case the OP just wanted a general idea without engaging a surveyor. I'm sure he would seek the necessary advice if he wished to proceed.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.