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@ITR1998, we pulled out in the end! So glad we did. Joined a group on facebook that is full of members who are stuck in leasehold properties and unable to buy the freehold. I posted on there and think we have definitely made the right decision about not going ahead. It's worth joining the page 'National Leasehold Campaign'. My post yesterday has lots of useful comments.0
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I spoke to the solicitors I'd instructed and they confirmed that buying the freehold is expensive, if you can't agree a value then the buyer will end up paying both legal fees. They said that if freehold was important to me then probably best to walk away.
I then spoke to Persimmon who said that they won't consider selling the freehold before 2 years, but they also said that they have no plans to sell the freehold. Based on stories about Taylor Wimpy selling to investment companies I'm not sure how much I believe this. They confirmed that the cap and RPI link would continue even if they did sell it.
Still concerned I rang local estate agents asking if buyers were being put off by leasehold. They said that based on the 999yr lease, relatively low service charge and ground rent that is capped/ linked to RPI (so effectively will always be £150 in real terms) this would not put buyers off. Although, they said that buying the freehold probably wouldn't add much value to the property.
I don't plan to stay in this house for more than 10 years, so my main concern is resale value. The properties are currently selling and estate agents have made it sounds like buyers will still buy it so I'm going to continue with the purchase. Hopefully in the next 10 years the property value increases enough to cover inflation and ground rent. Similar plots on the site are already going for £2-3k more which is reassuring.0 -
Sorry to the poster who was asking how I had decided to progress - afraid I hadn't checked the thread for a while.
We decided to pull out of the purchase. There were just too many unknowns for us and it made us feel uncomfortable.
The actual terms of the lease didn't bother us too much - regarding not being able to park a van, or change the colour of the door. That was insignificant to us and we could have lived with it all.
The freehold issue and not getting any answers to our questions of when we could buy it, would it be sold to a 3rd party etc were the real killers for us. We actually pulled out before we got any answers as it was making me too anxious and I just didn't want the property anymore.
The maintenance charges on our estate were a concern too - I did a bit of internet searching on the company and they did not get a positive light!
We were also buying with help to buy, so when the costs of that were added on too (in terms of the fees charged for selling on, remortgaging etc) it just seemed like we would end up paying a lot more than the house was worth.
We have now just had an offer accepted on an existing, freehold, no service charge 70's property today that needs some refurbishment and are much happier!
If the house had been freehold and no service charge I would still likely be buying the Persimmon house as I loved the actual house, just not all the legal stuff that went with it.0 -
The right to buy does not apply to houses, only to flats.0
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gaz12323423412 wrote: »The right to buy does not apply to houses, only to flats.
Why did you join today in order to...
- Reply to a post from February, and
- Give information that is wrong (and nonsense)?
(FWIW, The Leasehold Reform Act 1967 gives leasehold tenants of houses the right to buy the freehold - subject to conditions.)0 -
As this thread has been resurrected, has anyone actually bought the Freehold for a Persimmon new build house? We like a house, and compared to other 2nd hand homes the price is good - the house is approx 460k and budgeting 15k for the freehold reasonable?
The sales staff are useless and give no details about it at all. However, I know it's £150 ground rent for a 999 yr lease.0 -
As this thread has been resurrected, has anyone actually bought the Freehold for a Persimmon new build house? We like a house, and compared to other 2nd hand homes the price is good - the house is approx 460k and budgeting 15k for the freehold reasonable?
The sales staff are useless and give no details about it at all. However, I know it's £150 ground rent for a 999 yr lease.
The safest plan would be to buy the freehold at the outset (e.g. for £475k, or whatever price you negotiate).
Otherwise, it's a case of waiting 2 years, paying legal fees etc.
But FWIW, this calculator seems to suggest that the freehold should cost about £2.5k :
http://www.freeholdcalculator.com/freehold_simple.php0 -
Thanks.. although Persimmon refuse to do that. They do state they can't give an indication as they won't know the house value after two years.0
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Given the justifiable bad publicity on these schemes, I think you'll be in a bind when it comes to sell.
There's a consistent history with these schemes of the freehold being sold to a third party who jack up the price for the freehold, and AIUI there's no right of the leaseholder getting first refusal to buy the freehold.
I'd say walk away it could prove very costly when you come to resell, simply due to the toxic nature if these schemes which may well be filed out by new legislation in the next few years leaving you holding one of the tarnished remnants..0 -
AnotherJoe wrote: »Given the justifiable bad publicity on these schemes, I think you'll be in a bind when it comes to sell.
There's a consistent history with these schemes of the freehold being sold to a third party who jack up the price for the freehold, and AIUI there's no right of the leaseholder getting first refusal to buy the freehold.
I'd say walk away it could prove very costly when you come to resell, simply due to the toxic nature if these schemes which may well be filed out by new legislation in the next few years leaving you holding one of the tarnished remnants..
I think you'll find that its not justifiable bad publicity, its media driven hysteria.
There are a tiny minority on freehold houses (and flats) with terrible leases (the type that double every 5-10 or even 15 years).
These are, and have always been terrible, but "normal" leaseholds with terms of 200-999 years, ground rents that rise with RPI or double every 20/25 years, number in the millions, and have been part of our national legal framework for 50+ years, they are not and will never be "tarnished remnants".
As with every house purchase since you could buy houses, you need to do your due diligence, but a blanket walk away from leaseholds will severely limit your new build choices.0
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