Buy Your Freehold - guide discussion

Maikeru

Just saw this thread and wondered if anyone could help.

We've recently moved in to development of 21 townhouses held on 999 leases (from 1970). A year ago the residents clubbed together to buy the freehold by setting up a Freehold Company (which each of us have a 1/21 share in) - hence we now have a 'Share of Freehold' arrangement and do not pay ground rent (though I'm not sure they did so even before when it was just a 999 year lease).

The development is all communal gardens (no private ones) and the reason for the share of freehold is said to be to ensure the upkeep of the development, as it forces us all to pay a service charge to cover gardening, tree surgery, window cleaning and repainting of the property exteriors (every 3 years) - meaning nobody's house ever looks shabby and hence maintaining the attractiveness for all concerned.

Such developments were built in fairly large numbers in the 60s (Span etc) and I have now found a number of other similar developments where the houses are held on an individual freehold basis, and a residents association sets the rules on the upkeep of properties/communal gardens and collects the service charge. I had thought that a share of freehold is the only way to enforce service charges but these examples show that isn't the case.

I had a word with a leasehold enfranchisement solicitor about it but he seemed a bit baffled by the whole set up, his experience being mainly limited to flats.

If anyone has any ideas on whether it's possible to buy the individual freehold in this situation I'd be grateful to hear them.

Joanthebone

Thank you propertyman, I think this 'freeholder/leaseholder' thinks I am just a silly woman whom he can bamboozle!! I will be speaking to a solicitor very soon.

THEbigQUESTION

Hello all,
I just saw the thread and wondered if anyone could give me some advice with the below:

I bought 2003 my 1st floor leasehold flat in a converted house - 2 flats total. The annual ground rent is £50 and lease length 68 years.
In my lease the freeholder has to agree to all the external changes to the building and to the grounds.
The Loft belongs to my property I'd like to do a loft conversion to gain one or two bedrooms.

I’ve got more than one question really:

1 .
I’m not sure what is best. Buy the freehold or extend the lease. My downstairs neighbour will not have the means to buy his part of the freehold.
He is on the same freehold agreement and documentation as I am. The house was converted in two flats in 1985. Could I buy the complete freehold and be his freeholder from then on? Providing the freeholder will agree to sell me the freehold.

2.
I’ve been in contact with the freeholders son for over 9 month now. 1st he mentioned that I need to purchase the space above the roof,
later on he mentioned that I can’t do anything to the roof without his permission, which is correct according to my lease.
- Can I just buy the space above without changing the lease?
- Or buy the freehold and extend later as extending the flat on a leasehold base would mean he could ask for more money as the lease will be valued base on today’s market for a two/three bedroom flat value?
-

3.
After there have been many mails between us, the freeholders son mentioned that he is only looking after the freehold while his mother lives (or as he calls it ‘is on holiday in India’) and it will take some time to organise everything regarding my request to do a loft conversion.
Now here is the thing that makes me very nervous and suspicious. In his last mail he explained to me that he can’t do anything for me as his father and his mother have to sign the change of lease or passing on the freehold to me. However his father has not been seen since he left his family in 1998, which is before I actually purchased the flat.
In the copy of the lease an in my mortgage papers the contract was signed by their lawyers and I have no documentation or any other papers then the initial lease document from 1985 when the flat was fist converted.
- Is the selling of the flat still legal? I know my lawyer should have picked up on this, but she didn’t.
- Would I have a better standing when dealing and haggling with the freeholder regarding money because he sold the leashold without knowledge of his father? May I add, that the flat was sold to a couple whom lived in the flat for 3 years before I bought the flat. I assume their lease was also not signed by the freeholder father as it was again after 1998 when his father dissapeard.

All in all I’m not getting any information from the freeholders son and all is very tedious and without getting a layer involved I’m not sure where I stand and what the best approach would be.

I will however arrange for a surveyor to value the freehold and the leasehold extension. Depending on their valuation I will get a layer involved to look into buying the freehold, but all depends on the valuation and If I’m able to afford it.


Thanks

uksnoopy

Hello all,


Just a couple of quick questions. Our situation: we own 1 of 2 flats in a period conversion (ie, maisonettes now); we would like to buy the freehold to the property with our downstairs neighbours (so all leaseholders keen and on board!)


First, I read in a reply earlier in this forum, that the freeholder can refuse to sell. And yet I've read elsewhere that if you meet the right criteria, the freeholder cannot refuse to sell. Which is right?


Second, should we approach the freeholder ourselves first? I've read that we should get a value first and then have a solicitor approach the freeholder with an offer. What would your advice be?


Many thanks in advance! :-)

superbabe612

Hi all, I'm hoping for some help/advice. I've had an offer accepted on a semi-detached house, I've applied for a mortgage and paid my solicitor to do the searches on the property. However, they've just received the contracts from the vendor's solicitor stating that the house is leasehold, not freehold.

The brochure doesn't mention the tenure, nor does the memorandum of sale. Should the estate agent/vendor have disclosed this information before/when I made the offer on the house?

I don't know much about leasehold except I'd have avoided it if I'd known! What are the disadvantages? Should I go ahead with the sale or reconsider?

Thanks!

Deirdremac

Hi there,

I hope someone can enlighten me on my question!

i am the longstanding Secretary of a Management company set up when my local council sold off a block of 16 flats. The original buyers (myself incuded) took over the management company and we were offered the opportunity to buy the Freehold from the Council for £1 some fifteen years ago, which we did. We were never advised about the lease situation at the time, but I am now being told that we should have extended our leases (mine was originally 125 years in 1986 although some leases in the block seem to be shorter) when we bought the freehold. Why do we need to do this? We maintain the block ourselves and are very happy with our low service charge.

jhuang

The number for Leasehold Advisory Service is now 020 7832 2500.

One other small thing - I expected to click on Login with Facebook and get through straight away, instead of having to set up a MSE Forums account by filling in a user name and validating my email account.

AshfordPMC

Hi, My Uncle wants to add me to his lease and also add me to his share of his flat. He is a director of the property management company and wishes me to become a director also, with the proviso that he will stand down as director in the future and I will take over from him.

The company secretary has said they can reissue the share in joint names and also inform companies house of the additional director, is this correct?

WillRobbo123

First timer: have a question. Not sure if this is the place to post?
I bought a new build detached house over 2 years ago which is leasehold. The lease is 999, so there's 996 years left. Ground rent is £200 a year, which goes up £200 every 5 years. So I want to buy the freehold. What are my legal rights? The way I read things, I am legally entitled to buy it. However I contacted my solicitor who did my conveyancing and they say, I am not legally entitled. They wrote to the company that own the lease, and they say 'it's not company policy to sell the lease'. I However know that one of my neighbours negotiated his lease when he bought the house.
If there's no legal right for me to buy it, then it will cost me a lot of money in solicitors letters back and forth, which will get me no where. Any help is much appreciated. Thanks.

GTG

You need to go to the leasehold advisory website and study this page in particular sir.