Freehold Cost

quidsin

Hi, I'm after some advice, I've had my house for 10 years now, leasehold with a 80 year lease remaining (midlands). I been offered £7000 to purchase the freehold, is this a good offer?

G_M

I would take the £7000! Anyone who offers you money must be mad!

(how much is the freehold?)

quidsin

G_M wrote: »

I would take the £7000! Anyone who offers you money must be mad!

(how much is the freehold?)

Ah... I wish , the offer for me to purchase the freehold is £7000, I was expecting it to be a lot more.

G_M

Ah! You been offered the freehold for £7000. Got it!

thelem

Sounds like a pretty good deal to me based on putting £100k and £500/year in to http://www.moneysavingexpert.com/mortgages/extend-your-lease - although you'll be able to complete that more accurately.

Importantly, have you got just under or just over 80 years left on your lease? If it is just OVER, and you don't want to go for this option, then get it extended ASAP as the price will increase once it goes below 80 years making the property harder to sell.

quidsin

thelem wrote: »

Sounds like a pretty good deal to me based on putting £100k and £500/year in to http://www.moneysavingexpert.com/mortgages/extend-your-lease - although you'll be able to complete that more accurately.

Importantly, have you got just under or just over 80 years left on your lease? If it is just OVER, and you don't want to go for this option, then get it extended ASAP as the price will increase once it goes below 80 years making the property harder to sell.

I've just looked at my house details, I thought there was 80 years left but it turns out there's 63.

thelem

In that case, I think this section from the above link says it all

Typical cost to extend lease on £200,000 flat by 90 years

70 Years £16,500
60 Years £26,500

What if I've got a short lease?

Extending short leases is pricey – we're talking tens of thousands. If your lease is shorter than 60 years, talk to a solicitor about how much it will cost to extend (the leasehold calculators won't work below 60 years). Excellent legal advice is a must.

You've not said how much the property is worth, but it sounds like £7k is an absolute bargain and that if you don't buy the freehold then you need to urgently extend the lease anyway.

Fire_Fox

How does purchasing the freehold stack up against extending the lease? Will you be the sole freeholder? Will you be freeholder for anyone else's property? http://www.lease-advice.org/publications/

propertyman

Don't confuse advice on extending a flat lease with extending a house lease or buying the freehold of the house.

These are covered by different legislation, processes, and valuations.

For a house see here http://www.lease-advice.org/publications/documents/document.asp?item=15.

Don't forget that the lease will still exist and that when you buy the freehold that you should surrender the lease, thats give it up, to yourself, so there is only one title, freehold,