buying a freehold of a leasehold house

murray2

Hello All,
I am wondering if their are any legal buffs out there?I have carried out the conveyancing of 3 properties I have bought over the last 20 years with the aid of research and good D I Y Books.I would like to carry out the legal work on the above, but search as I may, I have been unable to find any D I Y books or information on the internet.I am wondering if the enfrachisement process is more complicated than mere conveyancing?Can anyone comment or possibly help?Thank you in anticipation. Murray2.

Richard_Webster

If you can find the freeholder and he is willing to sell at a reasonable price then it is fairly straightforward - for a solicitor.

You have to prepare a TP1 (assuming his title extends to more than one property) and get it signed by the freeholder, you send his solicitors the money and they send you the executed TP1 and then complete an AP1 and deal with the Land Registry ID forms. You will also have to do an OS2 search before completion.

If the freeholder will not sell or you can't find him then that is a whole new ball game and I simply would even begin without a lawyer. A lot of people would be put off trying to deal with the LR forms as a above.

Fire_Fox

Does the Leasehold Advisory Service website have any of the answers you need?
http://www.lease-advice.org/

murray2

Hello Fire Fox,
As part of my research I have looked at this website which, unfortunately does not offer any help in D I Y Conveyancing.Thank you for your kind interest. Murray2

murray2

To Richard Webster,
Thank you for your reply.The freeholder is willing to sell for a £1000.There are 55 years left on the lease at a rent of £9 a year with no service charges.I think under the present economic housing climate this figure may be two high.I have made an offer of £400 and am awaiting a reply.Where can I obtain copies of the T P I and the A P I?From the brief outline you have kindly given, the process does not look any more difficult,(perhaps less so)than house conveyancing of which I was able to complete the main work in 2 weeks.
Many thanks for your help so far. Murray2.

Richard_Webster

How much is your house worth? With only 55 years left to go on the lease you must buy the freehold because the house would be unmortgageable otherwise. Did anyone advise you about the dangers of such a short lease.

If it is worth £50,000 the value of the landlord's reversion (i.e. the ability to realise £50,000 in 55 years time) is going to be around £3,400. Add to that 13-14 x ground rent (£117-£126) and in round figures its about £3,500. If the house is worth more then you can see the amount rises more or less proportionally - the ground rent element doesn't.

Therefore don't argue about the value of the freehold because the landlord might come out with a higher figure!

If the lease had say 880 year left or something like that it is only the capitalised value of the ground rent (which is about 20-30 x ground rent - in your case £180-£270 - because the value of the reversion is virtually nil.

To get the TP1 etc you go to the Land Registry.gov.uk site and click forms and publications/forms where you can download all forms you need as PDFs or WORD docs.

murray2

To Richard Webster,
May I express my appreciation to you for giving up your valuable time to, not only to subscribe to the forum, but also for your very valued information and comments.My house ,will today, be valued around £140000.When I bought it there was 73 years left on the lease from the 99 years originally.The lease is owned by the widow of the builder.She appears to value the lease according to difference in the value when bought and the current value.What you are saying is the value of the freehold is £180-270.I know this lady would not accept this ,and, therefore, I will need to serve notice on her and probably go to a valuation tribunal.Surely her own solicitor would pass on the same/similar information on value of the freehold as you have to me?Thank you for the information to obtain the forms.I had already been to the land registry site but alas I wasn't sure what I was looking for.Enjoy your weekend. Murray2.

murray2

As a point of genuine interest ,has anyone succesfully carried out a D I Y purchase of a freehold from a leasehold house?In the conveyancing I have succesfully carried out the D I Y books I got from the library were absolutely essential to me to complete the process.Unfortunately, I cannot find any reference to D I Y Enfranchisment.If you know of any sources that, like the books I had, offer step by step guidance please let me know.Many thanks if you can help.
ps: I'm not just attempting to do this to save money but more for the challange it offers. Murray2.

Pee

The trouble with legal challenges is that if you get them wrong, then you get a real challenge to sort out.

There must be books aimed at solicitors which would cost about £80. Try someone like Jordan's or Tolley's book publishers. I don't suppose there would be much demand for them in the library and make sure it is up to date.

I'd also get some quotes as you may well decide it is not worth the bother.

Ian_W

murray2 wrote: »

What you are saying is the value of the freehold is £180-270.I know this lady would not accept this ,and, therefore, I will need to serve notice on her and probably go to a valuation tribunal..

I don't think that is what Richard is saying at all! Read his post again.

On a £140,000 house he is suggesting the freehold could be worth £10-12,000 due to the relatively short time left. He is suggesting if there were 100's of years left, rather than 55yrs, then the value would be £180-£270.

If you go to the tribunal they will value it at many times more than the freeholder is currently asking - are you sure you want to do the legals for this yourself?

Pee

And I would accept the £1,000, saving myself a lot of trouble.