Buying a leasehold house, does it cost more or cause problems?

Ft01

The area in which I am looking to buy a house has a large number of properties that are on long leases with a tiny amount of ground rent.
My reading left me with the impression that after a year you can buy the freehold and it tends to cost relatively little to do that-its something I would definitely want to do.

Does a house being a leasehold as oppose to freehold property cause any additional problems/fees when it comes to the buying process?

Badzadar

In my experience, in Cheshire, I bought a leasehold house. I pay £18.50 a year. After 2 years in the property you are eligible to buy the freehold. Whilst it didn't cause problems buying the house, any alterations, even as small as putting solar panels on the roof, required me to write to the freeholders for permission and paying a charge. I am now in a position to buy the freehold and trying to find out whether I need legal representation or not.

Badzadar

I am in a position to buy the freehold on my house. The price I have been quoted includes all the freeholder's costs. Do I need to get a solicitor/chartered surveyor to complete the transaction? Also, does buying the freehold mean I no longer have to pay ground rent each year as well as obtaining permission to make any alterations to my house?

Marktheshark

Freehold = you own the bricks and mortar and land
Leasehold = you own a bit of paper that lets you live in someone else's house

The fact the prices are so close confuses people they are virtually the same, they are not, leaseholds are the next toxic debt after the endowment crash.

G_M

Ft01 wrote: »

The area in which I am looking to buy a house has a large number of properties that are on long leases with a tiny amount of ground rent.
My reading left me with the impression that after a year you can buy the freehold and it tends to cost relatively little to do that-its something I would definitely want to do.
Not necessarily.

Does a house being a leasehold as oppose to freehold property cause any additional problems/fees when it comes to the buying process?

Of course. There is a lease to read, understand, approve.

AnnieO1234

Old leases for older properties with say 900 years left and a peppercorn rent may as well be freehold. Newer leaseholds however, well I wouldn't touch personally given the choice. Needing freeholders permission for every little thing can get wearing when they may charge £100 plus VAT per item. Plus ground rent increases every five years which may not even bd in line with inflation. I'm aware of one development around ten years ago now, starting for first five years at around £250 and increasing every 5 years by 25%! Xxx

Chanes

We've never had a leasehold property because you really don't own it and you need someone else's permission to do works. The newer leasehold properties available are outrageous in some terms!

If you have the choice always choose Freehold. Unless, of course, you fall in love with a leasehold in which case you might not be bothered by the idea at all.

penguingirl

We have a leasehold (also in Cheshire). Tbh most of the houses round here seem to be, but it isn't what we would have chosen but not a dealbreaker. We pay £12.50 a year and have 970 years left on lease. Even that annoys us. We might look into buying the freehold when we've been here 2 years.

alchemist.1

Depends on the freeholder. If its an old individual whereby the freehold has been in their families for years with a long lease (in the 900s), then its usually isnt a problem as they wont charge ridiculous admin fees for considering your request for any work to be done.

The properties where its a management company seem to cause a lot of issues.

SensibleSarah

I live in a leasehold house (Liverpool) with 965 years on the lease, peppercorn rent. However according to all the paperwork, no one knows who the leaseholder actually is, which is slightly worrying!

House was advertised by the EA as Freehold, and it only discovered to be LH when my solicitors did their thing. Because of this, they did charge me a bit more as they said there was extra work involved. I considered backing out, but as it took me 18 months and 30 viewings to find a house I didn't hate, I went ahead with it.

I doubt if I'll be able to buy freehold from mystery freeholder, but otherwise it doesn't seem to have caused any issues. Might cause problems if I try & sell it, but no plans for that.

sheila195

i have recently brought my leasehold to become a freeholder, £7,500 later!! i might add, but since getting in touch with the Land registry even though they have taken my cheque of £40 out of the bank (beginning of August) it still takes 3 months to complete
Does anyone know if this correct?