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If You Purchase The Freehold?

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If someone buys a house which is leasehold, so they have to pay ground rent, then I believe they have the right to purchase this meaning they no longer have to pay this rent.

After purchase of this is the house then considered freehold? Or is it still leasehold but now owned by the owner of the house?

If at some point in the future the owner of said house sells the house, are they selling a freehold house, or are they selling a leasehold house with the ground rent now being paid to them by the new owner of the house?

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As far as I understand it, if you buy the freehold of a house, then sell the house - you still own the freehold and yes the new house owner would pay you ground rent. I could easily be wrong though.

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As far as I understand it, if you buy the freehold of a house, then sell the house - you still own the freehold and yes the new house owner would pay you ground rent. I could easily be wrong though.

You sell it Freehold to get the best price...

If you are able to sell it leasehold then the price you obtained would be lower, because the buyer would take into account having to pay ground rent.

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As far as I understand it, if you buy the freehold of a house, then sell the house - you still own the freehold and yes the new house owner would pay you ground rent. I could easily be wrong though.

But you could presumably sell the freehold with the house, which would make it a bit more desirable/expensive. My in laws bought a leasehold house back in the 1940s and subsequently bought the FH after legislation that meant they were entitled to at a reasonable price. It was then to all intents and purposes a FH house.

I know of a case recently where someone bought the freehold of 2 flats, one of which he had bought leasehold. There were only 2 flats in the building and the owner ( leaseholder) of the other did not want to buy his share of the freehold. So when the first owner ultimately sells, he will sell it with the F/H of both, and at the moment will collect ground rent from the other, though IIRC it was a nominal amount anyway.

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there is now, in NI something like compulsory sale of the freehold.

In the past we gould sell a house but hole the leasehold asn charge a ground rent. 20 years ago this was a few pounds a year but it had increased to £100 per an or over around 2000. Something changed in the law and we can no longer sell leasehold for houses. Basically the purchaser buys the house plus the ground below it (which makes sence). Apartments are still sold leasehold as you dont acquire the bricks and blocks anyway. In theory we could still charge Ground rent on apartments but with the cost of management fees a added burden of a ground rent would make them even harder to sell.

on second hand houses I think you have the right (rather than compulsory) to buy out the head rent at something like 7 times the an rent. there may be suitations with shares access etc that are the exception to this.

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Think the OP is looking at redemption of ground rent. Think it's actually 9 times plus fees but it does make it an "effective" freehold but the existing covenants still stand.

I know in Belfast ground rent is still common on relatively new apartments, maybe not the same in the sticks.

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I had been wondering if an owner occuper of a house (not a new build house, and not an apartment) pays ground rent, then decides to purchase this. Meaning they no longer have to pay any ground rent.

I think once purchased then, the property is considered freehold.

So as far as I'm aware, when at some point in the future the owner occuper sells their home it is sold as a freehold property. This means the new owner also does not have to pay any ground rent to the previous owner, or in fact to anyone.

As far as I'm aware, this is correct...

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I had been wondering if an owner occuper of a house (not a new build house, and not an apartment) pays ground rent, then decides to purchase this. Meaning they no longer have to pay any ground rent.

I think once purchased then, the property is considered freehold.

So as far as I'm aware, when at some point in the future the owner occuper sells their home it is sold as a freehold property. This means the new owner also does not have to pay any ground rent to the previous owner, or in fact to anyone.

As far as I'm aware, this is correct...

yes. I believe so.

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