Advice about my freehold offer please

RHemmings

ffacoffipawb wrote:

My house is leasehold, 999 year lease with 960 remaining.

The ground rent is £20 pa, fixed. No other lease outlay.

I was quoted £600 plus costs to buy this out. Approx £1,000.

Not worth it to save £20 per year!

My £1,000 earns about double that much in interest anyway!

I suspect that your leaseholder could price the lease at much more than £1000 in the knowledge that if you buy it the value of your house will go up. By much more than £1000 I would think. If the £600 that your leaseholder will get is invested at 4% they will get a return of £24. Or a bit more if interested is compounded more frequently than monthly. But it's not a lot more than £20 is it.

Personally I think the £1000 is a very good deal and I would buy it. But it's your house not mine.

jamez79

Hi,

An update for you at last... There has been a recent ruling at a lease hold valuation tribunal, which has altered the figures used to calc freehold. In short, it's gone up! I'm now looking at £5100 inc costs. I'm buying it as i want an extension and it will add value to my home as it's easier for people to get mortgages on freehold properties. Would you lend someone £140,000 when in 50 years time the person that owns the ground can come and have it off them?!? No, neither would i.

Regards,

James