FTB: Buying a leasehold house.

turkeywelder

Hi all,

Quick and easy one if someone can help?

We've just had the Property Information Form on our intended purchase from the solicitor and it shows a charge for ground rent. This is fine, as we half expected it to be leasehold. Will our solicitor look into how long is left on the lease, or is that something we should enquire about? I'm concerned with the 83 year cutoff date before things get expensive!

Cheers

ilikecookies

I'd start by asking the vendor\their estate agent as it is a question everyone is going to ask as like you say it will affect the value of the house. If you decide to proceed you should then get your solicitor to doublecheck it and make it a part of the contract. Also whilst you know what the ground rent is today I'd strongly advise finding out how much it has increased by historically over the years. There have been cases of the increases being very steep. Also you'd need to find out if the charge covers everything or if additional amounts could be requested in extraordinary circumstances, etc. Forewarned is forearmed and all!

HouseBuyer77

Confirm there's no service charge as well.

You should definitely determine the length of lease remaining. Though assuming your mortgage offer is sorted that means the valuation survey will have happened which will report on things like this. So assuming you got sent a valulation report the information may already be there.

turkeywelder

We didn't get the valuation report sent over, but the mortgage was approved, so I assume the lender is okay. I'll ask the broker if we can be sent the report.

Thanks for the tips, I'll request the info. Cheers!

kingstreet

The valuation will assume the lease length is acceptable, as the only person capable of confirming what's left is your solicitor, once he is in possession of the draft contract from the vendor's solicitor.

Surveyor and estate agent will not know and will simply refer you to your solicitor, so cut out the middle man and go straight to the horse's mouth...

HouseBuyer77

The valuation will assume the lease length is acceptable, as the only person capable of confirming what's left is your solicitor

I'm fairly certain mine gave the length of lease + ground rent on the report. Though this was almost certainly obtained from the vendor/agent so would still require confirmation from solicitor to be sure. Length of lease (and potentially ground rent) can also be obtained via the title from the land registry.

turkeywelder

Thanks everyone, question put directly to the solicitor. Really appreciate the quick replies.

Cheers!