Right to Buy

Snetram

Hi,
I have been offered a RTB from my local council and it states clearly on the offer letter a lease term of 125 years ,however, when I went for a meeting with the housing officer, she said that that was just a standard letter and the actual term of the lease is 125 years from the granting of the 1st lease in the block (of 4 flats) which was in 1991. So by my calculation that means a 103 year lease . Is this correct? seems strange to me ?
Why state 125 years on my personal offer letter ? and surely the valuation will be affected too ? as the valuation in letter must be based on the 125 term in the same letter ?
Has anyone else had the same experience ?
Any comments would be appreciated.
I have queried this but she seems adamant
Thank you

kingstreet

There would be no difference in the value of a property, between a lease of 125 years and 103 years. If it was 125 years down to 60 years, that would be a different matter.

The letter should be worded "the residue of a 125 year lease, starting from dd/mm/yyyy" to be completely accurate, but it's something which should/would be ascertained by solicitors on receipt of the S125 notice.

It's a bit slapdash and likely to be a "copy & paste" error, but of no great detriment to you.

blckbrd

The Landlord's Offer Notices I used to work with stated that the lease was "coterminous" meaning expiring at the same time (as the first lease in the block). Some asked what that meant some didn't.

Working for different councils I learned that this was not standard. Some grant the full 125 years from the date of purchase of each unit.

I suppose, with the right for individuals to extend the lease, coterminousness(?) has become rather pointless and the official template has dispensed with the term. Though I'd imagine a grabby private freeholder who used the term might blithely reclaim properties if lessees didn't extend.

I'd challenge what the housing officer said. I believe such detail should be expressly written not assumed. Remember, the RTB process should cost you nothing until you decide to go ahead and buy and engage a solicitor. So finding out that you might have to extend the lease a lot sooner than imagined should be clear from the start.

no1wf

How can it be for 125 years when you own the house, surely it's for forever no? What happens after the 125 years if you've passed the house down in a will or something?

kingstreet

no1wf wrote: »

How can it be for 125 years when you own the house, surely it's for forever no? What happens after the 125 years if you've passed the house down in a will or something?

Th property reverts to the freeholder if the lease is allowed to end. That's why property values drop as the lease term drops.

ecgirl07

kingstreet wrote: »

Th property reverts to the freeholder if the lease is allowed to end. That's why property values drop as the lease term drops.

its is difficult for us scots (dont know no1wf background) to get our head round this leaseholder system you have down there - it just seems like a right racket.

no1wf

I don't know what a freeholder/leaseholder is and I'm in Wales lol just learning about all this stuff.

So really, you work your hardest, save up all your money, spend your time getting everything sorted to buy your house and you've only bought it for 125 years. After that it's not yours anymore and whatever great/grandchild you've left it to is out on their bum sometime during their stay?

[Deleted User]

no1wf wrote: »

I don't know what a freeholder/leaseholder is and I'm in Wales lol just learning about all this stuff.

So really, you work your hardest, save up all your money, spend your time getting everything sorted to buy your house and you've only bought it for 125 years. After that it's not yours anymore and whatever great/grandchild you've left it to is out on their bum sometime during their stay?

If they never paid to extend the lease then yes, however extending the lease is relatively easy and the pricing is not extortionate. Also it's not for houses, well sometimes it can be almost always it will be flats that are a part of a bigger building. If you own the entire building it'll almost always be yours forever.

There's a guide on MSE about it: http://www.moneysavingexpert.com/mortgages/extend-your-lease

seven-day-weekend

You or your heirs will need to extend the lease. My son bought a flat with a 66-year lease in 2012 and will extend it in 2014. The longer you leave it, the more expensive it will be. I suggest you look at the thread in citricsquid's link above.

Most houses in England are freehold (i.e. you own the land as well as the building and the right to live in and you are the freeholder). Most flats are leasehold (i.e you (the leaseholder) own the right to live in it until the lease expires and someone else (the freeholder) owns the land).

If it is an ex Local-Authority flat please make absolutely sure that your solicitor finds out about any forthcoming major works and other maintenance costs - they can cost the owner-occupiers in the block a fortune!