mslondon Posted July 4, 2005 Share Posted July 4, 2005 EA told me that this is the case, but I'm not convinced...it could end up costing more than a leasehold flat.. Quote Link to comment Share on other sites More sharing options...
kerplonk Posted July 4, 2005 Share Posted July 4, 2005 you should really look into this a lot more. it's too detailed to put all in one response but talk to people who own a leasehold flat find out about the service charge and the ground rent compare the two with people who live in share of freehold - it could and often is very different. though they're similar, they are also very different. try a google search, or i would advise even pay a solicitor for an hour of their time to find out more also, leases below 80 years are worth less than those above a new 80 year rule came in a few years ago if you want to extend find out how much it will cost to extend the leasehold you really need to look into this properly - it's not as simple as just cost paid upfront. i am a leasehold owner of a flat and i would never buy a leasehold again freehold forever, i wouldn't even bother with share of freehold Quote Link to comment Share on other sites More sharing options...
Antsy Posted July 4, 2005 Share Posted July 4, 2005 i am a leasehold owner of a flat and i would never buy a leasehold againfreehold forever, i wouldn't even bother with share of freehold <{POST_SNAPBACK}> Share of freehold is about as much as you are likely to get with flats, unless you are very lucky. But be careful about who makes the decision about mainetance and upkeep. And make sure you know what work has nbeen done recently and what is planned. Our rented flats are share of freehold in a block. Works are currently being done on the exterior and the service charge next year will rise from £100 to £300 per month for 12 months. Now, if someone came to me and asked for an extra £200 per month I'd be a bit p'd off. Know our landlord bought at a low price, but this represents about 39% pf our monthly rent being eaten up. Quote Link to comment Share on other sites More sharing options...
dogbox Posted July 4, 2005 Share Posted July 4, 2005 EA told me that this is the case, but I'm not convinced...it could end up costing more than a leasehold flat.. The opposite can be true. Many lenders shy away from such arrangements as their asset can be more exposed as there can be disputes between the flat owners leading to empass. Lenders arent keen as the maintainance / upkeep may come to a standstill, for example; if an owner died and the estate was subject to a legnthy probate or where an owner became mentally ill or dissapeared abroad. Such problems can mean a property becomes unsaleable, hence a lender couldnt recover the debt in the event of default. Steer clear. Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted July 4, 2005 Share Posted July 4, 2005 Stay away from leasehold altogether, freehold is the only option. Quote Link to comment Share on other sites More sharing options...
liquid Posted July 4, 2005 Share Posted July 4, 2005 Try these sites. Clearly you'll do your own research in respect of your own needs. Where the answer is not clear, be suspicious and walk away. http://www.lease-advice.org/commonmain.htm http://www.rics.org/Property/Commonholdpro...d+questions.htm http://www.odpm.gov.uk/stellent/groups/odp..._027094-02.hcsp http://www.adviceguide.org.uk/index/family...ying_a_home.htm http://www.channel4.com/4money/mortgages/f...old_141004.html Quote Link to comment Share on other sites More sharing options...
mslondon Posted July 4, 2005 Author Share Posted July 4, 2005 Try these sites.Clearly you'll do your own research in respect of your own needs. Where the answer is not clear, be suspicious and walk away. http://www.lease-advice.org/commonmain.htm http://www.rics.org/Property/Commonholdpro...d+questions.htm http://www.odpm.gov.uk/stellent/groups/odp..._027094-02.hcsp http://www.adviceguide.org.uk/index/family...ying_a_home.htm http://www.channel4.com/4money/mortgages/f...old_141004.html <{POST_SNAPBACK}> very useful info liquid...tvm! Quote Link to comment Share on other sites More sharing options...
nobody Posted July 4, 2005 Share Posted July 4, 2005 Don't buy a leasehold place unless you can buy the freehold as well. My father did this and apart from the minimal time arranging building insurance, external redecoration, etc. there is no extra work. If you don't have the freehold you're dependant on him/them being competent and fair. Most aren't as there are companies around who buy up freeholds and shaft the leaseholders. Quote Link to comment Share on other sites More sharing options...
200p Posted July 4, 2005 Share Posted July 4, 2005 (edited) If you are looking to buy a 1 or 2 bed flat, then why bother with leashold flat? Its only slightly more for a freehold starter house. In this world- dont rely on other people - they are going to screw you. Look how ex council flats where the buyers were laiden with a bill for 20K for reparing the roof, whilst the other tennants who rented from the council didnt have to pay. You are at the mercy of the freeholder. Oh and be careful - some houses are being sold as LEASHOLD not freehold. This is becoming more common it seems. Be sure to ask this when you buy when prices become lower. Problem is if you bought a leashold house, is that you have nothing to pass on to your children/grandchildren as the lease expires. I dont know what the original freeholder would charge to extend the lease (if they let you), but I bet it wont be £500 for another 99 years. Thats an idea though - I could buy up a load of freehold houses and sell them on again as leashold for the same price, so I become a sort of lord of the relm Edited July 4, 2005 by trev Quote Link to comment Share on other sites More sharing options...
CrashedOutAndBurned Posted July 4, 2005 Share Posted July 4, 2005 Leasehold is a strange medieval UK special, that has few obvious parallels overseas. The US has the condominium form of common ownership, and all of europe is based on something similar to the 'commonhold' option brought in last year. If you tried to introduce leasehold in continental Europe they'd assume it was a huge scam. Quote Link to comment Share on other sites More sharing options...
Guest wrongmove Posted July 4, 2005 Share Posted July 4, 2005 Leasehold is a strange medieval UK special, that has few obvious parallels overseas. The US has the condominium form of common ownership, and all of europe is based on something similar to the 'commonhold' option brought in last year.If you tried to introduce leasehold in continental Europe they'd assume it was a huge scam. <{POST_SNAPBACK}> This is interesting. How does it work overseas ? Is shared freehold the norm ? Obviously not all the residents in a block of flats can own the land outright. Quote Link to comment Share on other sites More sharing options...
CrashedOutAndBurned Posted July 4, 2005 Share Posted July 4, 2005 This is interesting. How does it work overseas ? Is shared freehold the norm ? Obviously not all the residents in a block of flats can own the land outright.<{POST_SNAPBACK}> Well, they own a share of it - and the bricks and mortar. There's a common misconception that in leasehold that you don't own the land but own the building - not true. You don't even own that! In, say, Spain most have an elected committee to look after the maintenance, or sometimes the residents pay an agency to do this for them. It all sounds quite democratic compared to the stress of leasehold but it can go badly wrong, as this movie by Alex De La Iglesia shows: http://imdb.com/title/tt0255067/?fr=c2l0ZT...;fc=1;ft=7;fm=1 Quote Link to comment Share on other sites More sharing options...
okonu Posted July 5, 2005 Share Posted July 5, 2005 In HK all land (well, apart from the Anglican Cathedral!) is leasehold. It is how the govt makes its money - basically every time you want to change land use you need to pay large premium to them. Quote Link to comment Share on other sites More sharing options...
mslondon Posted July 5, 2005 Author Share Posted July 5, 2005 it seems to me that most 'share of freehold' flats are commonhold and a company is set up so everyone knows what's what...having done some research and seeing the amount of ground rent/service charges that some landlords are charging I'm slowly coming round to this idea and it could benefit me in the long term as I've got some equity in the flat already... Quote Link to comment Share on other sites More sharing options...
Mog Posted July 5, 2005 Share Posted July 5, 2005 This is interesting. How does it work overseas ? Is shared freehold the norm ? Obviously not all the residents in a block of flats can own the land outright.<{POST_SNAPBACK}> I can't speak for the rest of Asia but in Malaysia and Singapore 99-year leases are very common. Quote Link to comment Share on other sites More sharing options...
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