Leasehold on a house?

stevens001

Well,

I views a house which i liked. The estate agent wasn't sure if it was a leasehold or a freehold.

So i asked the vendor, and they said the house has been listed as a leasehold, but dont think it is. But not 100% sure.

How do i find out the truth!!

Also, is buying a house with a leasehold not such a good idea?

thank you.

poppysarah

Ask to see the HIP. It should be in there.

Normally a small amount of ground rent to pay. Short leases <60 years are hard to mortgage and need renewing which gets increasingly expensive.

olly300

stevens001 wrote: »

Also, is buying a house with a leasehold not such a good idea?
.

Depends on what is on the lease and how long it's for.

You probably will have a lease of something like 999 years.

And the only reason it's leasehold is stop certain things happening to the house and the bordering land.

david29dpo

All you need to know will be in the HIP about the lease and now long is left.

Gareth83

I have just been to view a house which has a 980yr lease.

I am seriously tempted to put an offer in but have no idea if buying a leasehold is too much hassle? how does it work? do I even need to change it to freehold?

What should I put in my offer letter and how much should be reflected by this 'problem'?

The house is up for £110k, would £96k be a fair offer?

brightonman123

To th OP- a quick check on the land registry might help (£3 charge, i think?), though i would have thought the seller should know this, or have dome themselves, to avoid any accusations of misrepresentation, etc..?

Also, I feel the EA has a duty of care to verify ownership status, when an instruction is taken on?

paying the current (freehold assumed?) price could be well OTT, if ends up being a leasehold, and something you won't own outright.

JayZed

Gareth83 wrote: »

I have just been to view a house which has a 980yr lease.

I am seriously tempted to put an offer in but have no idea if buying a leasehold is too much hassle? how does it work? do I even need to change it to freehold?

What should I put in my offer letter and how much should be reflected by this 'problem'?

The house is up for £110k, would £96k be a fair offer?

If the house has a 980 year lease then this is not a 'problem' and shouldn't affect the value of the house at all. That's not to say that you should offer the full asking price in the current market, of course - but the fact that it's leasehold shouldn't factor into your calculations.

Gareth83

So at £110k would you say £96k is a fair price as a FTB good to go?

I have just found out that to get it transferred will cost £650 + fees

The ground rent is £3 per year

Richard_Webster

I have just found out that to get it transferred will cost £650 + fees

The ground rent is £3 per year

That seems rather high but could be reasonable if the freeholder was not charging his legal fees as well.

However, I suggest you tell to the seller that you'll buy house if he buys in the freehold. That way you get the freeholder off your back. Some of them are little old ladies who don't really care as long as they get their ground rent and their solicitor has told them it is worthwhile selling the freehold. Others are nasty property companies who, because they only get £3 a year, sit there trying to find ways of charging you for something. They send out questionnaires asking about whether there are any alterations or extensions and then charge you £650 for considering whether or not to give a retrospective permission for the work.