Freehold purchase price nearly doubled in 18 months ..advice needed

sibod2002

Hi guys

I'm currently got my house on the market and it is leasehold with 75 years left on the lease..my estate agents have advised me to buy the freehold so today I received a price of £15000..

I was pretty shocked as at the start of last year I was quoted 9000.

Any advice at how these figures are worked out ?

My current ground rent is 300 pound a year doubling every twenty years .

Any advice appreciated

sibod2002

Any ideas or advice guys would be greatly appreciated 😀

csgohan4

The less time you got on the lease the more expensive it is. Some buyers may not like it under 80 years and some mortgage companies don't lend under 80 years.


So you have a simple choice, buy the freehold, extend the leases or sell your house for less money to take this into account. You can try negotiating with the freeholder, but they hold all the cards, especially so now you have left it late.

anselld

sibod2002 wrote: »

Any ideas or advice guys would be greatly appreciated ��

you can get an idea of the likely price using this calculator ...
http://www.lease-advice.org/calculator/

or here...
http://www.moneysavingexpert.com/mortgages/extend-your-lease

The price does increase more rapidly with under 80 years remaining due to "marriage value".

However, If you have simply made an informal request then the freeholder can make up whatever figure they like. You can either negotiate informally or start the formal process by issuing a s42 notice ...

http://www.lease-advice.org/publications/documents/document.asp?item=8

Under the formal process the First Tier Tribunal will ultimatly determine a fair price if the parties cannot agree.