Buying a leasehold from Persimmon - Concerns

gtipler

Hello all,

me and my partner are currently in the process of buying a new build property from Persimmon Home and have a couple of concerns about certain terms of the contract. We are struggling because we love the property and the area, but are now worried about it being sold to us as leasehold rather than freehold (it is a house not a flat).

It is being sold as a leasehold with a lease of 999 years. There is a ground rent of £150 per year that increases every 10 years in line with RPI. There is also an annual service charge which is £125 for the first year.

I am concerned after reading stories online about the leasehold to a lot of these properties being sold off to 3rd party investment companies, who then charge well over what was originally discuss with the developer for you to purchase it off them. I understand that searching online will generally only bring up negative experiences as people are much more likely to complain than compliment but it has caused a bit of angst to the point where I am contemplating pulling out of the purchase.

Has anyone got any any experience in 1) purchasing the freehold from Persimmons after the two year period and how easy it was to do, and 2) how the resale of the property was affected if you were unable or didn't want to purchase the freehold.

Many thanks for reading this and in advance for your responses. Sorry if I haven't provided enough information, just ask if you need to know anything else in order to advise or help.

alex_163163

Can't give you exact answers, but myself and boyfriend were in the exact same position with persimmon a couple of months ago.
We loved the house and the area, but the same things as you were causing me so much worry and stress.
We decided to pull out of the purchase and as soon as we did I literally felt so relieved! I felt happy again!
We have now found an existing house to buy with no leasehold, no service charges, and it was definitely the right decision for us.

Anyway good luck with whatever you decide to do!

Captain89

Can you ask your Conveyancer to put something in the contract that states you must have first refusal when the Freehold becomes available?

I'm completing on a new build next month with Countryside and would never ever consider buying a leasehold house. Why are you paying a service charge? Will they come and clean your house for you? I know people need a place to live but something needs to be done about this practice.

alex_163163

Also, can I ask who the estate management company is? For our development it was GreenBelt group. If it's the same for you, do some research online! Some of the reviews and forums do not paint them well!!!! That formed part of our decision to pull out also.

alex_163163

You pay a service charge because the council doesn't want the cost of maintaining the common grassy areas, woodland, park etc. So in order to get planning permission, the developers have to employ a management company to look after it instead. Which inturn is billed to the homeowners.

sparky130a

gtipler wrote: »

I am concerned after reading stories online about the leasehold to a lot of these properties being sold off to 3rd party investment companies, who then charge well over what was originally discuss with the developer for you to purchase it off them.

I'll bet my mortgage this will happen.

Developers have no desire to hold onto this responsibility. And it provides a nice little profit when they leave site...

Marktheshark

You are not buying the property, you are buying a lease which has a service charge inclusion.
The bricks, the mortar the tarmac, the garden will all be owned by the master leaseholder.

As you have already spotted, they can install a management company and the £150 a year can very quickly become whatever they can get away with.

Look for a freehold where you actually own something other than a bit of paper.

Captain89

alex_163163 wrote: »

You pay a service charge because the council doesn't want the cost of maintaining the common grassy areas, woodland, park etc. So in order to get planning permission, the developers have to employ a management company to look after it instead. Which inturn is billed to the homeowners.

Yes that true but I thought this charge was known as an estate charge? Isn't a service charge for the upkeep of common areas in a flat?

davidmcn

Captain89 wrote: »

Yes that true but I thought this charge was known as an estate charge? Isn't a service charge for the upkeep of common areas in a flat?

Common areas are common areas - there's nothing magic about what name you use for the bill.

cloo

Yeah, I'd be wary of buying a leasehold new build house when there are plenty of freehold houses available.

I don't always counsel against buying older leasehold flats because often that's available if you can't afford a house, but the sole reason to sell new houses with a leasehold is to play fast and loose with it, and so there's a good chance it will happen. IIRC, the government has stated an intention to crack down on this behaviour by developers.

Chanes

This Facebook group has legal people and a lot of experience and you could ask there, ultimately it will be your home and your choice: https://www.facebook.com/groups/786983251448976/