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Shared ownership leasehold that when 100% is a freehold?
mgmgrand1
Posts: 62 Forumite
Hello
Many thanks to all the posters on here. It's a very useful informative forum.
Anyhow, I am buying 100% of a house from a Vendor who is in a shared ownership and owns 75%(Vendor is the son of a lady who lived there and sadly passed away) and the other 25% belongs to a housing association.
I asked about the lease situation and the Estate Agent said that the vendor was buying 25% share from the Housing Association and that would make it a freehold?
However, on the contracts it is saying it is a 99 year lease. I've raised this with my solicitor who said that they would raise it with the Vendor solicitor.
Does anyone have any info on this? My solicitor wasn't very informative.
Thanks
mgm
Many thanks to all the posters on here. It's a very useful informative forum.
Anyhow, I am buying 100% of a house from a Vendor who is in a shared ownership and owns 75%(Vendor is the son of a lady who lived there and sadly passed away) and the other 25% belongs to a housing association.
I asked about the lease situation and the Estate Agent said that the vendor was buying 25% share from the Housing Association and that would make it a freehold?
However, on the contracts it is saying it is a 99 year lease. I've raised this with my solicitor who said that they would raise it with the Vendor solicitor.
Does anyone have any info on this? My solicitor wasn't very informative.
Thanks
mgm
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Comments
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you will still likely have sinkin charge and maintenance fee of about 20-30 a monthDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Ignore the estate agent. The contract is what counts.This is an open forum, anyone can post and I just did !0
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A shared ownership property does not automatically become freehold when staircased to 100%.
Some Housing Associations never sell the freehold, so the property would remain leasehold, even after the owner takes the whole 100%.
You need to establish if the HA is selling the freehold, as well as the remaining 25%.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I asked about the lease situation and the Estate Agent said that the vendor was buying 25% share from the Housing Association and that would make it a freehold?
A large proportion of estate agents do not understand the basics of tenure. There are no qualifications to be an estate agent, anyone can call themselves one.
It is possible that on staircasing to 100% the freehold is transferred as well as the last 25% of the leasehold, but quite unlikely I would have thought. Ask for an explanation in writing of the tenure situation, get your solicitor to confirm it.0 -
When I bought a shared ownership house, my lease with the housing association stated that when staircasing to 100%, I would also get the freehold. I would definitely phone the Housing Association for clarity.0
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Maybe it is more common pratice than I had assumed then. It's possibly an easy way to permit the legal structuring of staircasing. Thanks for sharing that.0
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princeofpounds wrote: »Maybe it is more common pratice than I had assumed then. It's possibly an easy way to permit the legal structuring of staircasing. Thanks for sharing that.
I must admit, when I bought my shared ownership house, I bet the HA were sick of me by the time I moved in. I wanted full clarity on everything to ensure I knew what I was signing up for
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Like I said, some do, some don't, so you can't afford to assume.
You have to check with the HA.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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