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Leasehold Nightmare

rockitman_2
Posts: 2 Newbie
A week before we were due to exchange on our dream home we have discovered that it's actually a Leasehold property. Not only that, but there is a main lease with 890 years remaining and our property is sub let with 124 years remaining.
There are some crazy stipulations in the lease... they can stipulate which insurance company to use etc.
Anyone had any experience of this? Any advice? So gutted.
There are some crazy stipulations in the lease... they can stipulate which insurance company to use etc.
Anyone had any experience of this? Any advice? So gutted.
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Comments
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A week before we were due to exchange on our dream home we have discovered that it's actually a Leasehold property. Not only that, but there is a main lease with 890 years remaining and our property is sub let with 124 years remaining.
There are some crazy stipulations in the lease... they can stipulate which insurance company to use etc.
Anyone had any experience of this? Any advice? So gutted.
I am in the process of buying a leasehold flat and found the details of this website via the gov.uk site, http://www.lease-advice.org have found it really useful to understand the processes/implications of these types of properties.MFW#105 - 2015 Overpaid £8095 / 2016 Overpaid £6983.24 / 2017 Overpaid £3583.12 / 2018 Overpaid £2583.12 / 2019 Overpaid £2583.12 / 2020 Overpaid £2583.12/ 2021 overpaid £1506.82 /2022 Overpaid £2975.28 / 2023 Overpaid £2677.30 / 2024 Overpaid £2173.61 Total OP since mortgage started in 2015 = £36,574.79 2025 MFW target £1700, payments to date at February 2025 - £1000.0 -
Is the entity selling the sub-lease the same entity as the one that holds the head lease? If so, you could insist on buying both.
If not, I would be very wary. What ground rent (and provisions for future increases in GR) is stipulated in the sub-lease?0 -
Thanks for responding guys. I've read through the lease advise website over the past few days but might give them a call today. Situation is...
The land has been leased on a 999 year lease in 2013. There are several houses all on this lease which would be fine, but a builder has sub leased a part of the land on a 125 year lease & built the property we want to buy. As I understand this he will then issue us another sub lease.
Concerns are multiple... the 125 year lease has some really strange clauses
- can't sell the property without the 999 year lease holders consent... I'm not sure any mortgage company will commit to this.
- he can choose our insurers if he wishes.
- if the Ground Rent isn't paid (whether he bills or not) by the due date he can take the property
Solicitor of 30 years says he's never seen anything like it & is going to take some untangling. Waiting for some responses today & going to try & work with the builder on it but might have to walk away. We were supposed to exchange today...0 -
- can't sell the property without the 999 year lease holders consent... I'm not sure any mortgage company will commit to this.
- he can choose our insurers if he wishes.
- if the Ground Rent isn't paid (whether he bills or not) by the due date he can take the property
I don't think the first 2 points you raise are completely obscure as I've known similar things listed in leases. I once owned a Victorian maisonette of which the lease stated you needed the freeholder's permission to decorate & get his approval on the colour scheme! Not that anybody ever took any notice of this I have to say.
The ground rent point you've raised is actually standard in all leasehold properties, though the actual wording might be different. Of course in reality, if you fall into arrears it isn't as simple as freeholder coming along & telling you to get out. Things have to be done legally via solicitor's & the court process & evictions & loss of the property very rarely occur in such cases.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0
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