New Build House - Leasehold - Negotiate for Freehold ?

K_Bere79

Hello,

I am about to buy a new-build RedRow Home.
(no contracts signed yet)

The house costs over £200K, but is Leasehold.

This seems to be something that a lot of New Build companies are doing, as obviously it is an extra source of revenue for them.....

However, I am reluctant to pay over £200K for a house,
which doesn't even come with the land that it is built on.

I have spoken to RedRow about this, and the Freehold is available to purchase - for a cost in excess of £6K....

I have sold my current home, and have a mortgage agreed in principle, so as a buyer I am in a pretty good position.

I know I can negotiate on the price of the actual house, I have achieved 5% without even trying.....and think I can negotiate more.....

What I would like to know is, can I negotiate on the price of the Freehold - or even try and get them to throw it in with the house for free - I don't see why I should pay over the odds for a house (because its a new build) - and then pay extra again for the land it is on, when the Land should be included in the price of the house.....

any help or advice very much appreciated.

I know I should be going for older home, as it will be better value, but both my wife and I really like this house, and the area it is in

Thanks....

Wanton

How long is the lease?

tim123456789

more importantly what is the ground rent?

tim

Richard_Webster

You tell Redrow that there is quite a nice 20 year old house down the road that would suit you Ok - it isn't quite as nice as their new one but you would go fo it as it is freehold and a lot cheaper than the new one. In 10 years time the newer house won't be worth any more than the older one, especially if it is leasehold.

Developers are full of tricks and this leasehold house trick is one of the nastiest.

You have to be seriously prepared to walk away. Sadly there are plenty of people out there who won't see the medium term trap they are waking into by buying a new leasehold house.

artbaron

Leasehold for residential properties should be outlawed, it's just a money-making scam. Personally I wouldn't touch it.

propertyman

Richard has put it best, what is available locally freehold for £200K + £6k and how much of a premium would you add for it being new build?

If your restaurant has great food and great service, but they hit you on the drinks, you weight it up.

If it doesn't add up, move on.

pawlala

I bought a new build and got the developer to pay for the freehold. Anything less was unacceptable. Leasehold owners around here are having real trouble with the ground rent company. I on the other hand, look forward to putting £300 each December towards food, drink and Christmas presents

K_Bere79

Thanks for the advice everyone... The Ground Rent is £300 P/A,
So you are saying it is possible to negotiate with them on this, I really feel that they are ripping me off - and don't see why I should have to lease the land that my house is built on - when I have already paid for the house..... What a joke !

Furts

K_Bere79 wrote: »

Thanks for the advice everyone... The Ground Rent is £300 P/A,
So you are saying it is possible to negotiate with them on this, I really feel that they are ripping me off - and don't see why I should have to lease the land that my house is built on - when I have already paid for the house..... What a joke !

Does the £300 remain fixed for ever or will it be subject to increases that you have no control over? Might it be, say £500, in five years time and still rising?

embob74

I had a HA house on a new estate which was leasehold. Maintenance fees of £8 per week were payable for the lighting on the estate and the gardening. Originally there must have been a leasehold although by the time I moved in (5 years after it was built) the residents had taken it on. It was actually written into the bought properties contracts that once all properties were sold the residents would become the freeholders with all the responsibilities therein.

kingstreet

First house I ever bought was built on land owned by the Sefton family, once of Croxteth Hall, Liverpool.

The builders were given the right to develop, but ownership of the land was retained by the estate, so leasehold was the only option.

If it is possible to get the freehold included, go for it, but bear in mind there may be circumstances where the builder is unable to comply and you should then think carefully about the cost-effectiveness and future saleability, if you do purchase.