Buying My Freehold

Dual

Evening all,

Apologies for the long post but Im a detailed person!!

I bought my end terraced house in 1993, it orginally had a 99 year lease when it was built in 1966.

Didnt worry much about it at the time, I thought Ive got a few years to enjoy, got loads of time left to buy the freehold.

Well, 13 years down the line doing the math I only have 40 years left :eek:

So i have approached the managing agents who represent the freeholder to ask an approixmate cost of the freehold purchase before commencing any legal activities. They said they cannot give me an estimate as they havent got any records of recent homeowners who have bought thier lease as an example.

Can anyone advice me how they will ascertain the cost of me buying the lease? Whats it actually based on. My house value??

The managing agent said to send them a cheque for £120 and they will send a surveyor out who will advise the agent/freeholder of what it should be. I will get this £120 knocked off the freehold price if i decide to buy.

Im truly frightened as to what it will cost me. Friends tell me the less time the lease has to run the more expensive it becomes, is this true?

Im about to re-mortgage and I am going to get some extra cash to buy the lease as I know most banks & BS's wont mortgage on on property with less than 60-65 years. I dont want to extend the lease, I want the whole thing to be mine and have something to leave behind for my children.

Also, should I get an independant valuation done.

a few of my neighbours have also expressed thier interest in buying thier freehold, do freeholders offer "Group Buy discounts". It may sound far fetched and cheeky but if you dont ask you dont get!

Can anyone advise please.

Many thanks

Dual

Ian_W

First of all have a look at
https://www.lease-advice.org/housframe.htm
complicated stuff but you can contact them and discuss your particular circs with them. They are independent but govt funded. Not an expert but some points on your post below:

Dual wrote:

Can anyone advice me how they will ascertain the cost of me buying the lease? Whats it actually based on. My house value??
See the link to Lease, but the freeholder can initially base it on what they want - you can offer what you want, if it goes to a tribunal that's the legal basis for working it out but initially it's down to negotiation.

The managing agent said to send them a cheque for £120 and they will send a surveyor out who will advise the agent/freeholder of what it should be. I will get this £120 knocked off the freehold price if i decide to buy.

Im truly frightened as to what it will cost me. Friends tell me the less time the lease has to run the more expensive it becomes, is this true?
Generally - yes, sorry to say - but you are where you are - so I wouldn't worry unduly until you get some figures.

Im about to re-mortgage and I am going to get some extra cash to buy the lease as I know most banks & BS's wont mortgage on on property with less than 60-65 years. I dont want to extend the lease, I want the whole thing to be mine and have something to leave behind for my children.
Get a price for both. If it's extended by 50yrs you'll be back almost to where you started, plenty of time to leave to your children etc, but if affordable they buying the F/H is better.

Also, should I get an independant valuation done.
Yes, but I'd wait to see what their valuer comes up with first. £120 seems a reasonable charge for doing this so their valuation might also be reasonable to the extent you're prepared to pay it or close to it without too much argument.

a few of my neighbours have also expressed thier interest in buying thier freehold, do freeholders offer "Group Buy discounts". It may sound far fetched and cheeky but if you dont ask you dont get!
If it goes to formal valuation by a tribunal each unit AFAIK will be individually valued BUT if a few of you join together then it should provide savings for your own surveyor and lawyers. If it can be settled by negotiations them there will be cost savingsfor the F/Her in selling several together so you could seek this but it isn't something you can insist on AFAIK.

Can anyone advise please.

Many thanks

Dual

Hope that helps and BoL.

Dual

Thank you very much for your advice here.

Gillby1

Erm...if it had a 99 year lease in 1966, then surely only 40 years have passed, and you've still got 59 years left?

starving_artist

Ian W's reply is pretty much the score. I know because I am in a similar situation. You have a legal right to extend your lease if you have lived in the property more than 3 or 5 years (can't remember which). The Leasehold Advisory Service will do a rough calculation if you give them all the info - the forumula is pretty complicated and involves looking things up in tables so it's not the kind of maths you can do yourself. One thing to bear in mind is that once the lease falls below 80 years it becomes a lot more expensive. They can explain why. (As a rough idea, I have a one bedroom flat in a terraced house with 75 years remaining on the lease and it looks as if I may have to pay £6-8,000 :eek: ) The figures they give you will be the basis applying to the Leasehold Valuations Tribunal. If you go this route the extension will be for 99 years. You also have to pay the freeholder's legal costs. Obviously if you can negotiate something without resorting to the Tribunal it's cheaper.
Alternatively if more than 60% of the leaseholders are willing you can force the freeholder to sell your share of the freehold.

My advice: Try and negotiate.

Good luck!

Dual

Gillby1 wrote:

Erm...if it had a 99 year lease in 1966, then surely only 40 years have passed, and you've still got 59 years left?

Oops...you are quite right, 59 years left. I never did like math at school :rotfl:

Doesnt change my situation though