100 Year Lease on Part of a House. Can Anything Be Done?

Noiz

Me and my girlfriend are looking to buy our first house, and recently viewed what looked to be the ideal property. Well within our price range this was a 1 bedroom "coach house" property with 2 garages underneath and a large drive with enough room for 3 cars.

When we got to the viewing, however, we were told that the drive and garages would not be included with the purchase as they are bound by an existing lease. The estate agent knew nothing more than that, saying that the vendor was being quite tight with the details. We asked him to find out more information.

Today they've just got back to me and have told me that the garages and drive are leased for 100 years, for which the current owner gets £100 per year. I asked if there was any way to cancel this and he said only if the vendor is willing to sell the lease as well. I was quite taken aback at all of this so I thanked him and hung up.

Now I'm pondering whether it would be worth finding out if we can buy this lease from the vendor and get access to this extra part of the house, but my main concern is that if we did do such a thing, would we even be able to cancel the existing lease without the leasers agreeing?

100 years seems a ridiculously long time for a lease on a couple of garages, and if it wasn't for that the house would be perfect.

Anybody ever run into something like this before that can give any advice? By the way, the house itself is pretty new, I'd say 20 years old at most so the lease has a long time to run yet...

Thanks for any help!

Mike

dmg24

Hi Mike,

Is the coach house freehold or leasehold? If it is freehold, has it always been so or did the current owner buy the freehold at a later date?

The set up you are describing is extremely common, and 100 years is a standard time (it could be much longer!) for a lease. It would be possible for the current owner to transfer the lease over to you, but you certainly could not cancel the rights of the current lessees.

If the property is freehold, but the seller plans to retain the garages beneath it, there will be implications in you getting a mortgage, and buildings insurance. It is by no means impossible, but there will be lenders and insurers that will not deal with this kind of property.

If the property is leasehold, who is the lessor?

star1_2

Leases are not uncommon especially with maisonnetes, flats and properties above shops etc....

You need to approach the Freeholder and see if there is any chance of purchasing it, If sucessful, you'll then own whats below the property as well as the property itself. Alternativly it may also be possible for you to make an offer based on the vendor aquiring the freehold as part of the total purchase agreement, this then puts the onus on the vendor to negotiate and see whats possible.

With regards to your mention of the agent and vendor knowing anything .... they both know that this is probably a "sticking" point for selling the property, Agents and Vendors oftern plead ignorent when asked specifics on things like this (especially agents, they "back well-away from legal specifics" - from my experience). In these circumstance - if you only want to buy the property if the lease issue is resolved, I would write a letter, or put a formal offer in writing to the agent (copying the vendor in), saying you offer £xk on the basis that the freehold is aquired and included in the sale by the vendor at their cost. In any subsequent conversations or corrispondance, if they query this issue, ask them what the increased price would be? if they were to undertake this request....

Alternativly - purchasing with a lease is totally acceptable and commonplace, additional Morgage conditions and questions will need to be satisfied and I'm sure in the situation of a garage below the property - a surveyors report that confirms the fire integrety / safty will be needed by your mortgage company, insurance providers as well as yourselves for peace of mind.

Noiz

dmg24 wrote:

If the property is freehold, but the seller plans to retain the garages beneath it, there will be implications in you getting a mortgage, and buildings insurance.

It seems to be that. The estate agent said it was freehold when he called.

So basically, even if we did buy the lease (and ownership of the rest of the property) there'd be no way we could terminate the lease, unless the leasees agreed? That seems very unlikely.

dmg24

So basically, even if we did buy the lease (and ownership of the rest of the property) there'd be no way we could terminate the lease, unless the leasees agreed? That seems very unlikely.

Yep, that's right. I'd also agree that (assuming they use them!) the lessees are unlikely to give up their rights ... unless they had an incredibly good monetary offer!

Noiz

No, I very much doubt they'd give it up. The drive had 2 cars parked there when we went to view the place and, though the garage windows are frosted, I could make out a fair few bottles and other well-used-garage type items in there.

Damn.

Thanks for the help though. I guess we'll carry on looking.

Norma_Desmond

Another point - as the living accomodation is over the garages it may be what's known as a 'flying freehold' and as such difficult to get a mortgage on.