Lease Advice

andyp19uk

Hi,

i'm after some advice regarding my property which is currently lease hold.

My property is an ex-council property which i recently purchased and is currently tied to a long term lease - so in theory no problems.

However the local council have now written to me stating that they are looking at selling all lease-holds to an external organisation.

They have however stated that i can purchase the freehold to my property for a cost of £750 inclusive of the councils surveyors fees and legal costs.

I have been told that i am under no obligation to accept the offer and the terms to me lease will remain the same irrespective.

i'm struggling to understand the potential benefits/pitfalls of this situation, therefore any advice would be most appreciated.

a little guidance would at least help me understand more about the situation.

andyp19uk

any advice ????

cattie

Is it a flat or house you own? If a house, then jump at the chance to own the freehold, as the price they are asking seems quite reasonable as it includes all legal fees etc.

A freehold house is a much more attractive proposition if you are thinking of selling in the future than a leasehold house.

In a nutshell, with freehold, you own the land as well as the building. With leasehold, you don't own the land, but own the building for the term of your lease, although you have the legal rights to extend the lease once you've owned a property for 2 yrs.

If a flat then the process of owning freehold is more complicated as it's only possible to have a share of the freehold in conjunction with other leaseholders & you would need to seek specialist advice about this as it involves setting up a management company if there are a few flats in the block.

These people are the best for advice on all issues regarding owning leasehold property, including lease extensions & purchasing the freehold. It's a government funded agency. http://www.lease-advice.org/newintro.htm

andyp19uk

thanks for the reply cattie,

yes the property is a house, to be honest i thought the price of £750 wasnt too excessive.

I have however been given assurances that the terms of my lease are not going to change under the new owners.

I am trying to understand the benefits i would gain by being freehold as opposed to lease hold.

thanks for your help, i will have a look at the link you provided.

any other advice out there ????

silvercar

You never know what the other organisation may do in the future., including increasing the price for buying the freehold. I would say its money well spent.

That is provided the house is on a adopted road. If its on an unadopted or private road (or worse its not on a road as some council houses round here aren't) I would not be so quick to act in case you have the upkeep of the road to pay for.