Freehold question(s)

bob_binz

Hi all

Please forgive any misunderstandings I may portray with this question!

I have recently paid off my mortgage and downloaded a copy of the title. In it, there is an entry that states the following:

The land in this title is subject to a perpetual yearly rentcharge of
£18 created by a Transfer dated 17 November 1972 made between (1) blah blah and (2) blahdey blahdey.
The said Deed also contains covenants.

The house is freehold. We've been paying the £18 each year. As it happens, we've just received this year's invoice for the land rent, but this year it is offering us the option to purchase the "Rent Charge Deed and Covenants" for £495 (don't know if this is because the mortgage is paid up, or coincidence?)

The thing is, I'm not entirely sure what this means. If the property is freehold, does staying as we are just mean we pay £18 a year for ever? Are there any benefits to either staying as we are or buying the deed?

As I said, forgive any misunderstandings, I'm not really sure what I'm talking about !!

Any advice greatly appreciated
S

princeofpounds

The thing is, I'm not entirely sure what this means. If the property is freehold, does staying as we are just mean we pay £18 a year for ever?

Basically yes it looks like that, assuming no other clauses elsewhere.

Are there any benefits to either staying as we are or buying the deed?

It's a 3.6% annuity basically. Not the worst deal, not the best. A bit better if you are a serious taxpayer (as it comes out of after-tax income, so equates to a better gross return).

Probably worth it for easier admin purposes if it were me.

bob_binz

Thank you for replying

princeofpounds wrote: »

Basically yes it looks like that, assuming no other clauses elsewhere.

Where would I find further clauses? There's nothing more in the title document, from what I can see.

princeofpounds wrote: »

It's a 3.6% annuity basically. Not the worst deal, not the best. A bit better if you are a serious taxpayer (as it comes out of after-tax income, so equates to a better gross return).

Sorry, I'm not sure what this bit means. The way I see it currently is that the property is likely to be sold long before £495/£18 years, so how would paying the £495 benefit me?

princeofpounds wrote: »

Probably worth it for easier admin purposes if it were me.

What admin purposes? For me, I currently pay the £18 per year by bank transfer and forget about it for a year.

Thanks again for taking the time to help me

bob_binz

Apologies for the bump, still confused - man do I feel thick at the moment!

So, if the property is freehold:

1. What am I paying £18 per annum for?
2. What happens if I just stop paying it?
3. I understand the chief rents are being abolished by 2037? If so, why would one pay more than 23 times the annual payment to buy the rent charge deed?
4. Are there more costs than just the payment to the LL involved (I read about surveys, but this sounded like it pertained to leasehold)?

Again, apologies for the stupid questions, I'm just not getting it :embarasse Perhaps I should make an appt. with a conveyancing solicitor?!


Thanks for reading
S

G_M

bob_binz wrote: »

Apologies for the bump, still confused - man do I feel thick at the moment!

So, if the property is freehold:

1. What am I paying £18 per annum for? to comply with the
   Transfer dated 17 November
2. What happens if I just stop paying it? eventually? You get sued. and will be unable to sell as any buyer will want proof your payments are up to date
3. I understand the chief rents are being abolished by 2037? If so, why would one pay more than 23 times the annual payment to buy the rent charge deed? why indeed?
4. Are there more costs than just the payment to the LL involved (I read about surveys, but this sounded like it pertained to leasehold)?

Again, apologies for the stupid questions, I'm just not getting it :embarasse Perhaps I should make an appt. with a conveyancing solicitor?!

S

* You need to read the Transfer dated 17 November. The Land registry may have a copy. Or if you used a conveyancer when you bought, they should have got a copy (and either given it to you and/or kept a copy)

*You need to check what other covenants are contained within it.

wheelz

bob_binz wrote: »

Hi all

Please forgive any misunderstandings I may portray with this question!

I have recently paid off my mortgage and downloaded a copy of the title. In it, there is an entry that states the following:

Hi,
I have recently done the same. I'm interested to find out how and where you 'downloaded a copy of the title'?

G_M

wheelz wrote: »

Hi,
I have recently done the same. I'm interested to find out how and where you 'downloaded a copy of the title'?

£3 from the land registry here.

bob_binz

Sorry to keep banging on about this. I think I'm finally getting my head around what it all means.

So I've spoken to the company that take the rentcharge and they're saying whether waiting until 2037 or using the government rentcharge buyout option, the current rentcharge owner would still require any covenants to be abided by. Is this true?

I was told that insurance had to be taken through their specified company or there was a charge. Making changes to land registry documents would incur a charge. Probably all the usual things. So is it correct that these covenants would still exist even if I use the government rentcharge claim system?

Ok, just realised that's the same question twice :embarasse

Thanks again
S