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Buy Your Freehold - guide discussion
Comments
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saffmonster wrote: »Bumping to see if I can get an answer...
I'm a little confused. Are you renting the house as a tenant and the landlord offering you a chance to buy the house or are already the owner and the landlord is offering to sell you the freehold?
Thanks,Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.0 -
If he has a mortgage he owns the home on a 900 yr odd lease.
What I more concerned about is the importation of irrelvant foreign concepts of "buying the lease".
The OP has a lease so the freeholder is offering the freehold.
the reason to buy is to avoid paying ground rent or the need to get any consents for alterations subletttings assignment ( sale) or extensions or in some cases paying for insurance via the freeholder's nominated or named broker or insurer.
Buyers of houses do have an instinctive aversion to leasehold homes, common though , and sometimes necessary, as they are.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
saffmonster wrote: »Question...
I've lived in my terrace house (mortgaged) for 13 years and I've had a letter from the freeholder saying they want to sell the leasehold which has 900 years on it. Letter says that if I don't want to buy it will be put up for sale/auction. If the lease isn't bought by myself and is bought by someone else what's the worse that can happen?
At first I thought you meant he was offering to sell you the freehold, but when you mentioned it has 900 years on it, then it must be a lease. How much longer do you have on your lease?0 -
Our freeholder acquired the freehold of our block of 68 flats in approx. 2010. We found out, in 2012 when we bought our flat, that he had not given the tenants the Right of 1st Refusal.
We made enquiries and found out that he also bought 3 flats, re-newed the 68 leases at a cost of £1,600 per flat and that he paid £1 for the freehold. He says as it was a 'relevant disposal' and that he did not have to give the tenants RFR. We disagree. Has he broken the law? If so what should we do about it?
We would be grateful for any help on this matter!0 -
the building i am in has a commercial unit on the ground floor and 42 apartments above, all are 999 year lease's, including the commercial unit, can we buy the freehold.0
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I live in a house converted to three flats. We are considering buying our freehold. We have 97 years left on our leases.
We already have the Right to Manage (obtained by our predecessors in two cases), so have a RTM company and are managing the property, with no problems.
So the only advantage is to enable us to renew the leases, and avoid ground rent, which is nominal.
We don't expect the Freeholder to be willing to sell it.
Does us already having the Right-To-Manage affect the value of the freehold, eg would it be valued at less?
Or does this make any other difference in this process?
Any advice welcome.0 -
No not really, while it marginally affects income streams, RTM is only achieving good management that was anticipated by the lease.
If all three flats are members of the RTM company you can use that company but it ceases to be an RTM once the freehold is bought as it is the freeholder!Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
Thanks propertyman, that's what I thought but good to have it confirmed.
Thanks for letting me know we can use the same company, that's one less thing to pay for!0 -
superlative wrote: »Thanks propertyman, that's what I thought but good to have it confirmed.
Thanks for letting me know we can use the same company, that's one less thing to pay for!
Please be careful when deciding to use the RTM company for enfranchisement. An RTM company is usually limited by guarantee and participants are 'members'. Whereas an enfranchisement company is usually limited by shares with participants being 'shareholders'.
Furthermore, do check the Articles of the RTM company permit you to acquire land rather than simply manage it.
Good Luck!Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.0 -
They can simply amend art 5 of the standard articles to include acquistion of the freehold as they will have to amend the articles generally anyway to tidy up references to RTM.
If they extend as they should the leases at the same time it takes all the value out of the company ( and assuming thre are no other income streams or development potential) and a guarenteee company is ok for that sort of situation.
As an alternative they can acquire through a new company and terminate RTM and dissolve the RTM company to tie in with its year end. Its peanuts to set up a new company though using a formation agent or solcitor it runs to a lot more peanuts!
Do note that the statutory right to enfranchise (rather stupidly I agree) requires that the company is a member/guarentee company.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0
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