Buying freehold house with leasehold garage

djPM

Hi All - wanting some advice please.

We are currently purchasing a 3 bed property that we found out after offer accepted that the garage that's in a block is actually leased and only has 49 years left on the lease.

Our sols and ourselves raised the extension of this (and to purchase the freehold but we've been told no) as a query which is holding everything.

Our sellers have said if we accept 67 years they'll pay the fees. Or they said if we want 99 years on the lease (which is what we do want) the landlord of the garage has said it will cost £1000 premium to which the sellers said they weren't going to pay.

As a gesture of goodwill we have said we'll pay half of the premium - but now the sellers are saying they want half of the legal fees too (£750+VAT) (even though they were going to pay this for the 67 years, and they'd have to do it for us or any other buyer).

Also all paperwork says ground rent is £5, and now the landlord is saying £75 per year.

Should we offer more (we definitely aren't going to pay half though) or should we stick to our guns and only offer £500 - which I already think is reasonable??

Thanks :beer:

zagubov

djPM wrote: »

Hi All - wanting some advice please.

We are currently purchasing a 3 bed property that we found out after offer accepted that the garage that's in a block is actually leased and only has 49 years left on the lease.

Our sols and ourselves raised the extension of this (and to purchase the freehold but we've been told no) as a query which is holding everything.

Our sellers have said if we accept 67 years they'll pay the fees. Or they said if we want 99 years on the lease (which is what we do want) the landlord of the garage has said it will cost £1000 premium to which the sellers said they weren't going to pay.

As a gesture of goodwill we have said we'll pay half of the premium - but now the sellers are saying they want half of the legal fees too (£750+VAT) (even though they were going to pay this for the 67 years, and they'd have to do it for us or any other buyer).

Also all paperwork says ground rent is £5, and now the landlord is saying £75 per year.

Should we offer more (we definitely aren't going to pay half though) or should we stick to our guns and only offer £500 - which I already think is reasonable??

Thanks :beer:

Do the same rules apply for leasehold garages as for flats? ie can you find out how much it would cost to go the statutory route (if possible) and get the seller to start the process and you become the beneficiary in two years time?

eddddy

zagubov wrote: »

Do the same rules apply for leasehold garages as for flats? ie can you find out how much it would cost to go the statutory route (if possible) and get the seller to start the process and you become the beneficiary in two years time?

Nope - you have no statutory right to extend the lease of a garage.

djPM wrote: »

Should we offer more (we definitely aren't going to pay half though) or should we stick to our guns and only offer £500 - which I already think is reasonable??

It's hard to say.

It sounds like the argument is over about £1400.

- Would you walk away rather than pay an extra £1400?
- Would the seller walk away rather than pay an extra £1400?

It's all down to who is better at negotiation and/or who is more desperate for the transaction to happen. (Or perhaps who is more bloody-minded.) There's no scientific answer.

G_M

Depends how much you want the house!

Frankly arguing over this is petty. If you really want the house, then forget the garage issue.

If you think you'd be able to find another house you'll like as much, at a similar price, but with a garage in the freehold, then stick to your guns and be prepared to walk away.

Cakeguts

You are expecting to live in this house for 49 years until the lease on the garage runs out? Or do you want to pay over £1000 for a garage?

This is ridiculous it is a garage. The house isn't leasehold it is only the garage.

AdrianC

djPM wrote: »

Our sellers have said if we accept 67 years they'll pay the fees. Or they said if we want 99 years on the lease (which is what we do want) the landlord of the garage has said it will cost £1000 premium to which the sellers said they weren't going to pay.

As a gesture of goodwill we have said we'll pay half of the premium - but now the sellers are saying they want half of the legal fees too (£750+VAT) (even though they were going to pay this for the 67 years, and they'd have to do it for us or any other buyer).

Look at the total cost of each suggestion.

So to extend to 67 years will cost you £0, and will cost the vendors £900.
To extend to 99 years will cost you £1000, and will still cost the vendors £900. This is not really unfair, because you're the only one getting the benefit of that longer extension. They get nothing above the shorter extension.

You've asked for the 99 year extension to cost you £500, and the vendors £1,400. That's not a bad opening position, but no more than that. You're suggesting a big increase in their cost for no benefit to them.
They've counter-offered that you each pay £950 - increasing their cost by £50. That's not much of a counter-offer in my book...

OTOH, as part of the total sale price of a three-bed property, the whole thing is minimal.

Also all paperwork says ground rent is £5, and now the landlord is saying £75 per year.

If you're going for a negotiated extension, the ground rent can be changed as part of that, yes. Over 10 years, that's another £700 over the current total. Not a great bargain.

Should we offer more (we definitely aren't going to pay half though) or should we stick to our guns and only offer £500 - which I already think is reasonable??

Personally, I'd be looking into the likely cost in two years time of a statutory extension, which would extend by 99 years and give a peppercorn rent - but you would pay all the legal fees for both sides.

stator

Would the house be unsaleable without the garage? What is the on-street parking like?

If the garage is that important to you then it's your decision as to whether you pay for anything or not. It will come down to how much do you want the house vs how easily they think they can find another buyer who doesn't care so much about the garage.