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If You Purchase The Leasehold?
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Possom
Posts: 433 Forumite
in N. Ireland
If someone buys a house which is leasehold, so they have to pay ground rent, then I believe they have the right to purchase this meaning they no longer have to pay this rent.
After purchase of this is the house then considered freehold? Or is it still leasehold but now owned by the owner of the house?
If at some point in the future the owner of said house sells the house, are they selling a freehold house, or are they selling a leasehold house with the ground rent now being paid to them by the new owner of the house?
After purchase of this is the house then considered freehold? Or is it still leasehold but now owned by the owner of the house?
If at some point in the future the owner of said house sells the house, are they selling a freehold house, or are they selling a leasehold house with the ground rent now being paid to them by the new owner of the house?
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Comments
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If you, the leaseholder, buy the freehold, the deeds will be adjusted to identify you as the owner of the now freehold property.“What means that trump?” Timon of Athens by William Shakespeare0
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qwert_yuiop wrote: »If you, the leaseholder, buy the freehold, the deeds will be adjusted to identify you as the owner of the now freehold property.
So once an owner occupier purchases the freehold on their leasehold house (upon which they are paying ground rent), then when they sell the house at some point in the future the then purchaser has purchased a freehold house and do not have to pay any ground rent.
Is this correct?0 -
Possom - yes, correct. You 'buy out the Leasehold' and become a Freeholder, and from then on there is no Leasehold on the property.0
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It might be worth mentioning that the length of the leasehold will vary and often up to 999 years. However many are much shorter and trying to sell a property with a short lease ( say 30 years ), may prove difficult and have an effect on the price of the property.
In some cases though, it is possible to buy a lease extension, or the freehold.
For some additional info, read here ;
http://www.housingadviceni.org/leaseholders-freeholders-and-ground-rent#sthash.erwuPcOE.dpbs0 -
Possom - yes, correct. You 'buy out the Leasehold' and become a Freeholder, and from then on there is no Leasehold on the property.
Not strictly true at all, if you buy out the ground rent then you have a freehold property. If you buy out the ground rent (9x ground rent + approx. £50 land registry free + cost of solicitor to witness the form that you need to sign) then all you have done is redeemed any future payments of ground rent.
Buying out the freehold (which I have done) is a separate matter costing a lot more takes a lot longer to do, probably requires the assistance of a solicitor.
Buying out both the ground rent and freehold on a £30 per year a number of years ago cost me between £600-£700.
martin570
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