Confused about Leasehold (LOOONG POST)

balsingh

zain wrote:

I'll gve u our example,

We bought a flat six years ago ( london area) and it had 84 years left on the lease. I was worried about what would happen when we tried to sell and with my neighbour downstairs enquired about buying the freehold. The landlady wanted 8k each plus cost (i.e. a total of 16k). Now, five years later she is willing to accept 5k each. We are in the middle of buying the freehold.

Thats seems so cheap ... I've heard of stories where freeholders are asking for figures in the region of 50k-80k for a share in the freehold.

zain wrote:

Once we obtain the freehold, we will extend the lease to 999years at no cost to us.

Once you are the freeholder, is it easy to extend the lease? Also, when you sell the property, will you be the freeholder? ie. will you be able to charge ground rent to the new buyers?? Also, how does the fact that you own a 'share' of the freehold affect the new buyers of the flat?

EdInvestor

devils_advocate wrote:

Unfortunately not. The freeholder owns all the land and buildings. .

Sorry, I wasn't quite clear enough, undoubtedly this area is a pedant's delight. :rolleyes:

When I sais "freehold covers the land the building is on, the common walls and roof, the hallways, lifts, garden, fences etc, which are shared by all the separate owners of the leasehold flats within."

I should have said "use of "which are shared by the owners of the leasehold flats within.

The leaseholder owns the RIGHT to use the specified buildings (ie flat) for the duration of the lease. If a leaseholder sells, he is selling the right to use the property for the remaining period. The ground rent is the lease rental

I'm sure that was right when freehold/leasehold were originally invented, but more and more the right of the leaseholders to own effectively in perpetuity is being established, with their new right jointly to purchase the freehold if they wish being a major step forward.

In other countries of course they use "strata title" which confers this on flat owners via something quite similar to our joint ownership of the freehold.

zain

balsingh wrote:

Thats seems so cheap ... I've heard of stories where freeholders are asking for figures in the region of 50k-80k for a share in the freehold.


Once you are the freeholder, is it easy to extend the lease? Also, when you sell the property, will you be the freeholder? ie. will you be able to charge ground rent to the new buyers?? Also, how does the fact that you own a 'share' of the freehold affect the new buyers of the flat?

Not sure, we are still in the process of buying. My understanding is that we can extend the lease to whatever we like and when i sell the share of the freehold simply passses on to the next owner. Remember, my Neighbour and I are sharing the freehold but to be honest i don't know all the details i am just guessing at the mo. I will be clearer when it has all gone through!