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Leasehold or freehold?

dthom
dthom Posts: 7 Forumite
in House buying, renting & selling
I am about to purchase Redrow new build at £370000 with a leasehold for 999 years and £300pa rent. They have offered me the freehold at 26 years rent, i.e. £7800. As I have already reserved the property and they did not seem too keen to sell the freehold unlikely that I would be able to negotiate on the price.

I am guessing that obtaining a freehold a few years down the line might be more complicated with solicitors fees, Redrow selling it to third parties etc.

Added advantage to having the freehold would be that I retain control of my property.

Is it worth paying this seemingly exorbitant amount to change it to freehold or should I leave it as leasehold?
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Comments

  • Doozergirl
    Doozergirl Posts: 34,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Is this a flat or a house?
    Everything that is supposed to be in heaven is already here on earth.
  • ognum
    ognum Posts: 4,879 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    dthom wrote: »
    I am about to purchase Redrow new build at £370000 with a leasehold for 999 years and £300pa rent. They have offered me the freehold at 26 years rent, i.e. £7800. As I have already reserved the property and they did not seem too keen to sell the freehold unlikely that I would be able to negotiate on the price.

    I am guessing that obtaining a freehold a few years down the line might be more complicated with solicitors fees, Redrow selling it to third parties etc.

    Added advantage to having the freehold would be that I retain control of my property.

    Is it worth paying this seemingly exorbitant amount to change it to freehold or should I leave it as leasehold?

    given the opportunity I would purchase the freehold if it a house, if it's a flat I would need to know how many other owners have purchased the freehold.
  • dthom
    dthom Posts: 7 Forumite
    It's a 4 bed house. It appears that they were selling similar properties as freehold in 2012, and then last year sold newer ones as leasehold, I'm guessing to make some extra money.
  • Doozergirl
    Doozergirl Posts: 34,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Wow. I'm surprised at them trying to pul a trick like that. Houses are devalued a bit by being leasehold. You need that freehold but I would be telling them where to get off thinking they can charge extra for it without you having a chance to discuss the difference with your solicitor.

    Regardless of what they say, it is unusual to sell leasehold and I would push for the freehold included.

    Developers have a habit of selling freehold interests onto incestors who couldn't care less about you. Freehold is essential, IMO, enough that I personally would withdraw from the sale and lose my reservation fee over it.
    Everything that is supposed to be in heaven is already here on earth.
  • bristol_pilot
    bristol_pilot Posts: 2,235 Forumite
    I wouldn't buy a house that didn't include the freehold, end of. (Flats, you may have no choice).
  • TrickyDicky101
    TrickyDicky101 Posts: 3,535 Forumite
    Part of the Furniture 1,000 Posts
    Doozergirl wrote: »
    Developers have a habit of selling freehold interests onto incestors who couldn't care less about you.

    Presumably because they're not related to the OP ;)

    Sorry, couldn't resist...
  • Doozergirl
    Doozergirl Posts: 34,082 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    TrickyDicky101 wrote: »
    Presumably because they're not related to the OP ;)

    Sorry, couldn't resist...

    Oops! :rotfl:
    Everything that is supposed to be in heaven is already here on earth.
  • geoffky
    geoffky Posts: 6,835 Forumite
    More fool you for considering a leasehold for a house...
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • chris_m
    chris_m Posts: 8,250 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Doozergirl wrote: »
    Developers have a habit of selling freehold interests onto incestors who couldn't care less about you.

    Isn't it nice when a typo (or spoolchucker correction, if that's what it was) can produce such a perfectly apposite result?
    :rotfl::rotfl::rotfl:
  • dthom
    dthom Posts: 7 Forumite
    Certainly not related :)

    This is in Buckshaw Village in the Northwest, a new development, and the vast majority of properties are leasehold; especially the ones I have been interested in.

    If I were to decide to have a freehold property I would either have to purchase the leasehold or look for a property elsewhere

    Guess I need to weigh my options....
This discussion has been closed.
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