Buying out the ground rent (freehold?)

Possom

If I buy out the ground rent on my home, which I think I can do through Land Registry by paying the owner of the ground rent 8 years worth of ground rent, would this then mean that my home is now freehold?

Or does it simply mean that I no longer have to pay ground rent, but it's still not freehold? If this is the case, then after buying out the ground rent, how would I additionally make my property freehold?

Thanks.

BatCat

Eugh, I looked into this.
Unfortunately it's not just a multiple of the ground rent, you also have to pay a 50£ land registry fee and possibly also one for a solicitor who has to sign the forms.

BatCat

https://forums.moneysavingexpert.com/discussion/4213221=

RikM

This is from the guidance notes issued in 2006:

Step 4 When Land Registry is satisfied that everything on the application form is correct, it will issue a certificate of redemption to the rent-payer. It is this certificate which will enable you to have your ownership of the house registered as freehold.
...

Step 6 In many cases it would be advisable to apply separately to Land Registry for merger of your new freehold and the existing freehold held by the rent-owner. This will again help to simplify the title ownership and its extent to residential property in Northern Ireland.

Possom

BatCat wrote: »

Eugh, I looked into this.
Unfortunately it's not just a multiple of the ground rent, you also have to pay a 50£ land registry fee and possibly also one for a solicitor who has to sign the forms.

Thanks, even if it's 9 times as was suggested at one point in the thread you linked-to plus any additional associated fee, I was really wondering if after buying out the ground rent in this manner, does that then mean the property is then a freehold?

Or if it simply means ground rent is no longer payable, but ensuring the property is freehold is something additional which has to be done?

nodsgol

Possom wrote: »

If I buy out the ground rent on my home, which I think I can do through Land Registry by paying the owner of the ground rent 8 years worth of ground rent, would this then mean that my home is now freehold?

Or does it simply mean that I no longer have to pay ground rent, but it's still not freehold? If this is the case, then after buying out the ground rent, how would I additionally make my property freehold?

Thanks.

I have just asked for a price to buy the land that my house sits on it was built by a building company that went bust last year. We have owned the house from new-build, seven years ago. I pay £175pa and the rent collector is saying:

"Acting on behalf of

---

Ltd I confirm that the Landlord is prepared to dispose the freehold interest subject to payment.

Freehold sale price at £7,000

Landlord`s legal costs at £300 + VAT payable in advance


I replied asking why It was so expensive and got this reply:


Please be aware that our client is an acquirer of freeholds and very rarely agrees sales. This is the price our client will be prepared to dispose the freehold interest on this property.


Then I asked how they came to own the land when I should have been offered it first, and got this reply:

Please refer this enquiry to the previous freeholder as it was their obligation to give you a notice re the sale of the freehold interest at that time

Everything in RED is quoted and I have the emails.
Can anyone please advise on what I should do next?
Many thanks.

Possom

From what nodsgol is saying above it would appear that if I paid out the 8 times ground rent to buy this it may mean the outcome is simply that I no longer have to pay ground rent.

Though ensuring my home is freehold is perhaps something additional since 8x£175 for the ground rent is obviously not £7000.

saverbuyer

Possom wrote: »

From what nodsgol is saying above it would appear that if I paid out the 8 times ground rent to buy this it may mean the outcome is simply that I no longer have to pay ground rent.

Though ensuring my home is freehold is perhaps something additional since 8x£175 for the ground rent is obviously not £7000.

What are you trying to achieve? Remove ground rent liability? Why would you want the freehold?

Possom

saverbuyer wrote: »

What are you trying to achieve? Remove ground rent liability? Why would you want the freehold?

Well if I thought if it wasn't particularly expensive, and there was no disadvantage to doing this, then I had thought it might be good to own the ground my home is built on.

So nothing more than that really.

saverbuyer

Possom wrote: »

Well if I thought if it wasn't particularly expensive, and there was no disadvantage to doing this, then I had thought it might be good to own the ground my home is built on.

So nothing more than that really.

If you are going to stay for more than 9 10 years then go for it.

Golden_Anemone

nodsgol wrote: »

I have just asked for a price to buy the land that my house sits on it was built by a building company that went bust last year. We have owned the house from new-build, seven years ago. I pay £175pa and the rent collector is saying:

"Acting on behalf of

---

Ltd I confirm that the Landlord is prepared to dispose the freehold interest subject to payment.

Freehold sale price at £7,000

Landlord`s legal costs at £300 + VAT payable in advance


I replied asking why It was so expensive and got this reply:


Please be aware that our client is an acquirer of freeholds and very rarely agrees sales. This is the price our client will be prepared to dispose the freehold interest on this property.


Then I asked how they came to own the land when I should have been offered it first, and got this reply:

Please refer this enquiry to the previous freeholder as it was their obligation to give you a notice re the sale of the freehold interest at that time

Everything in RED is quoted and I have the emails.
Can anyone please advise on what I should do next?
Many thanks.

Nodsgol, this is the Northern Ireland forum. The legislation to purchase ground rent is NI specific. I don't believe your circumstances are covered by it.