Offer Accepted / Lease + Freehold

taskerl

Hi,

After getting to the survey stage of another property and finding quite alot wrong including a short lease we decided to look elsewhere.
Have just had an offer accepted on another property which is 17000 more but for the price is brilliant!!

Property is a new build/renovation top floor with only one other underneath, this has already had an offer accepted too but preffered the top property anyway.

The lease is currently in the process of being drawn up and should be finished this week i am told.

I wanted to book another appointment to view again as need to choose carpets and bathroom flooring to be fitted, whilst arranging the viewing the agent said they would be there anyway, sounds like they are showing more people around,

If my offer has been accepted can offers still be made? what do i need to do to guarantee the property? i have everything in place but need to wait until the lease is sorted before i can get the survey started.

Also regarding the lease, have been told that we can buy the freehold for £1 the lease will be 125 years.
Have been told that the only reason they are getting a lease sorted is otherwise it is hard to get a mortgage, would this not be the case if i was to buy the freehold and sell on at a later date?

Thanks for your help in advance

Vetyver

Congrats on the offer acceptance! But get on the phone NOW and tell the Agent to take the property off the market as condition of your offer. Other offers can still be made right up until you exchange contracts, so make sure no-one else is shown round, to reduce the chances of being gazumped!

You don't have to wait until the lease is sorted before starting the survey. Get the survey done ASAP!

taskerl wrote: »

Hi,
Also regarding the lease, have been told that we can buy the freehold for £1 the lease will be 125 years.
Have been told that the only reason they are getting a lease sorted is otherwise it is hard to get a mortgage, would this not be the case if i was to buy the freehold and sell on at a later date?

This bit I'm interested in, as I'm undergoing the same situ... except I've been told that the freehold will cost £1k, not £1!! :eek::eek: Can anyone else advise on this??

Jeffrey_Shaw

taskerl wrote: »

If my offer has been accepted can offers still be made? what do i need to do to guarantee the property?

Not a lot.
It's all 'subject to contract'- so either side can withdraw- unless/until contracts are exchanged.

taskerl wrote: »

Also regarding the lease, have been told that we can buy the freehold for £1 the lease will be 125 years.
Have been told that the only reason they are getting a lease sorted is otherwise it is hard to get a mortgage, would this not be the case if i was to buy the freehold and sell on at a later date?

That sounds nonsense. If it's a new house, why on earth should it not be sold freehold?

Jeffrey_Shaw

Vetyver wrote: »

This bit I'm interested in, as I'm undergoing the same situ... except I've been told that the freehold will cost £1k, not £1!

The value of a freehold reversion- on a house- depends mainly on:
a. how long the unexpired term of the lease is;
b. the amount of ground rent; and
c. general interest rates..

BUT the balance changes if the unexpired term drops below 80yrs.
The value of the house plays a much larger role in the cost of enfranchisement [= buying the f/r plus any other intermediate estates].

taskerl

Jeffrey_Shaw wrote: »

Not a lot.
It's all 'subject to contract'- so either side can withdraw- unless/until contracts are exchanged.


That sounds nonsense. If it's a new house, why on earth should it not be sold freehold?

Was told that this is because it is 2 properties, ground floor and first floor? ...

Jeffrey_Shaw

taskerl wrote: »

Was told that this is because it is 2 properties, ground floor and first floor? ...

So are you buying a 'duplex flat' [two-storeys, maisonette]? If not, what is 'two storeys'? Surely any residential building- other than a bungalow- has two or more storeys!

kingstreet

The property appears to be a flat, so it should remain leasehold.

If however you wish to be the freeholder for the building, accepting responsibility for its upkeep, you may wish to consider that.

Jeffrey_Shaw

kingstreet wrote: »

The property appears to be a flat, so it should remain leasehold.

If however you wish to be the freeholder for the building, accepting responsibility for its upkeep, you may wish to consider that.

Aha- that now makes more sense. Maybe it's a building of two flats; one's already sold; and V wants to get rid of its entire freehold estate.

taskerl

Correct it is a building of 2 flats, so my best case would be to leave the lease as it is, with 125 years and no ground rent or maintenance, a contract is being drawn up to specify who is responsible for what in terms of maintenance.

With regards to the offer, pretty scared now that we are going to be gazzumped so will be speaking to the agent when i see them later about taking it off the market.

Thanks for all your input!!

Jeffrey_Shaw

taskerl wrote: »

Correct it is a building of 2 flats, so my best case would be to leave the lease as it is, with 125 years and no ground rent or maintenance, a contract is being drawn up to specify who is responsible for what in terms of maintenance.

With regards to the offer, pretty scared now that we are going to be gazzumped so will be speaking to the agent when i see them later about taking it off the market.

Thanks for all your input!!

A pleasure to assist.
By the way, do try to obtain the f/r [in the two flats' lessees' joint names].
That way, they control the outgoings; and no-one will seek to make a profit from them.

Vetyver

Jeffrey_Shaw wrote: »

So are you buying a 'duplex flat' [two-storeys, maisonette]? If not, what is 'two storeys'? Surely any residential building- other than a bungalow- has two or more storeys!

If the OP's situation is the same as mine - which I think it is - then the two flats used to be one property, but have been converted into two self-contained flats. We're buying one of the floors as a self-contained flat; the other floor is being sold simultaneously to another buyer.

I was told the same thing - that is, first, the leases are being extended to 125 years, then we need to buy the share of freehold separately, after completion.