Help needed with Leasehold deeds

Doglover88

Hi
got a copy of the deeds through for a leasehold property (recently extended to 125yrs) Im due to buy in 2 months but theres a part in it I dont understand? Can I post in on here hoping one fo you could explain? Or can I e-mail it to one of you to read through? Its only one paragraph so its not too long!!
Help!
Glen

m00nie

post in on here but edit out any personal details if any, hopefully someone may be able to help you then

Doglover88

Here goes:

"8) (a) PURSUANT to section 155 of the Housing Act 1985 if during the period of three years from the date of hereof there is a relevant disposal (as defined in Section 159 of the Housing Act 1985) of the Property which disposal is not exempted by the provisions of section 160 of the Housing Act to pay the lessor on demand the amount specified in paragraph (b) hereof PROVIDED THAT if there is more than one such disposal of the Property within the said period of three years then such payment shall be made only on the first of such disposals.

(b) The amount payable under paragraph (a) above shall be £23,120 being the amount by which the Lessor reduced the current market value of the property in order to determine the premium now paid by the Lessee as shown in Clause 1 hereof but reduced by one third of the said sum of £23,120 for each complete year from the date hereof which has elapsed as the date of such disposal."

Can anyone please help? The figure of £23,120 is scaring me a bit I dont want it to be some hidden charge Im about to be hit with

Cheers

trafalgar_2

ok here goes.......in simple terms

if you sell your house within 3 years you will pay a forfeit(for want of a better word ) ,this can only be done once ,even if the property is sold 10 times during that 3 years

if you sell it within 1 yr.......you pay back £23,120

after 1 year you will pay ...........2/3 of it back

after 2 yrs ...................1/3rd of it back
once you have been there 3 years ,you pay nothing extra when you sell


this is because the property is being sold at a discount to you of £23,120

however if for instance the property has to be sold in that time because of say marriage breakup and the property is to be sold in settlement you won't have to pay the £23,120

any questions please ask

Doglover88

Thanks trafalgar

Reading through it further the deeds are dated 1995 when the property was bought from Council by the first private buyer so Im assuming this discounted 'penalty' was only applicable up to 1998?
Glen

trafalgar_2

glenbat wrote:

Thanks trafalgar

Reading through it further the deeds are dated 1995 when the property was bought from Council by the first private buyer so Im assuming this discounted 'penalty' was only applicable up to 1998?
Glen

yes that's right ...........that explains the discount as it's not usual:D

hope you enjoy your new home

Doglover88

Thanks once again