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Unreasonable to want a new build freehold?
Racheya
Posts: 103 Forumite
DH and I were about to reserve a 4 bedroom detached new build, when we noticed it was 250 year Leasehold not Freehold. This doesn't really bother me too much (I won't be around) but DH didn't feel comfortable with it, so we didn't go ahead. We were told making it Freehold would cost £6k and that's not money we have up front (DH wants it Freehold from the start).
Turns out this is a common practice, at least in the North West and we have no particular plans right now that would really need it. It's kind of just the principle of owning the land your house is on. So are we being unreasonable to want the Freehold from the start or would you not even consider a Leasehold like this?
Turns out this is a common practice, at least in the North West and we have no particular plans right now that would really need it. It's kind of just the principle of owning the land your house is on. So are we being unreasonable to want the Freehold from the start or would you not even consider a Leasehold like this?
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DH and I were about to reserve a 4 bedroom detached new build, when we noticed it was 250 year Leasehold not Freehold. This doesn't really bother me too much (I won't be around) but DH didn't feel comfortable with it, so we didn't go ahead. We were told making it Freehold would cost £6k and that's not money we have up front (DH wants it Freehold from the start).
Turns out this is a common practice, at least in the North West and we have no particular plans right now that would really need it. It's kind of just the principle of owning the land your house is on. So are we being unreasonable to want the Freehold from the start or would you not even consider a Leasehold like this?
We are in the process of buying a house like this at the moment. We will be buying ours after the 2 years are up (you need to own the property for two years)0 -
That's the way it is here in the Midlands, too. 999 year leases and hefty ground rent/service charges for absolutely nothing. Feels like a scam to extract another 6k from homeowners just after the point their house price starts recovering from the "new home premium".
I noticed a new build estate on my way to work has put a big banner on the edge of the site stating that all their properties are freehold, so some builders are catching onto what people want.0 -
Personally I wouldn't want a leasehold house under any circumstances. It's either Freehold or nohold for me.Changing the world, one sarcastic comment at a time.0
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That's the way it is here in the Midlands, too. 999 year leases and hefty ground rent/service charges for absolutely nothing. Feels like a scam to extract another 6k from homeowners just after the point their house price starts recovering from the "new home premium".
I noticed a new build estate on my way to work has put a big banner on the edge of the site stating that all their properties are freehold, so some builders are catching onto what people want.
Our last home was freehold, still had service charges and worse still was the roads would never be adopted so after 20 years someone will be paying for new tarmac. Glad to be out of it.0 -
It depends on the source of the land.
If it's part of a Duchy or somesuch, the builder gets what he's given.
I don't know many builders who want to hold on to the freehold these days.
As I've said before, I ended up buying a leasehold house in Liverpool 12 back in the 80s. The land belonged to the Sefton estate.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 -
Ditto.
OP - no room for negotiation? I'd be asking them to throw it in or I'm walking away.
Same here. I am not keen on new builds anyway but, if i did get one, I would reject leasehold outright. Had enough hassle with my previous leasehold flat. To me a house has to be freehold, even if the lease would be for 999 years. Why should you have to pay about 6K to make the change?0 -
Same here. I am not keen on new builds anyway but, if i did get one, I would reject leasehold outright. Had enough hassle with my previous leasehold flat. To me a house has to be freehold, even if the lease would be for 999 years. Why should you have to pay about 6K to make the change?
We made it clear the freehold was why we decided against making the reservation but they weren't really budging on it.
They calculated it at 20x one year's ground rent. Seems like a nice little money-maker for them, but it's annoying for the rest of the world.0 -
In the final analysis,everyone is a leaseholder as all lands belong to the Crown Estate.Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..0
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It's a much more common thing these days. With interest rates so low, ongoing income streams (just like houses incidentally) become more valuable.
Indeed depending on the escalation clauses they can sell these ground rents to investors and property managers at 15-20x (plus whatever can be creamed off management fees too)
Most buyers undervalue these, so it's often a good pricing strategy for developers.0
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