Persimmon - Lake View

martinsurrey

ReadingTim wrote: »

I still don't understand why you feel it's preferable to rent the land on which your house sits rather than own it.

We all just rent the land from the next generation.

These are 999 year leases at 10 year RPI increases.

and OP didn't say it was preferable, they just said its not a big deal, and they are right.

[Deleted User]

jdc23 wrote: »

The property is sold on a Leasehold basis. It is not one of these doubling every 10 ones or anything though, increases inline with RPI. I have talked at length with our solicitor about it.

I hope it wasnt a solicitor they recommended.

Do yourself a favour and walk away, it could be the biggest financial mistake of your life.

You may except Leasehold with RPI increments but what happens if you waat to buy the Freehold to find the land has been sold on to some property investors looking to squeeze as much out of you as possible in service / maintenance charges.

Are your roads private and not to be adopted by the council - this has implcations

I am sorry to be a doom monger but Leaseholds are building up to be the next PPI, Endowment take your pick scandals

martinsurrey

BBH123 wrote: »

I hope it wasnt a solicitor they recommended.I agree, always go independent

Do yourself a favour and walk away, it could be the biggest financial mistake of your life.

You may except Leasehold with RPI increments but what happens if you waat to buy the Freehold to find the land has been sold on to some property investors looking to squeeze as much out of you as possible in service / maintenance charges.

the maintenance charge is independent of the freehold, buying the freehold will not change that, new build freeholds still have to pay the maintenance charges on new build estates, the freehold of the house just covers the land of the plot

Are your roads private and not to be adopted by the council - this has implcations


and has implications on almost every new build estate as few councils adopt these days

I am sorry to be a doom monger but Leaseholds are building up to be the next PPI, Endowment take your pick scandals

more likely next week chip wrapper

comments above in red

[Deleted User]

The maintenance charge is indepoendant of the Freehold but who owns / manages the Freehold can have a huge impact on likely costs.

the property investing companies have no interest in the Freeholds other than maxing the money that can be made by pushing the boundaries of the Lease to the max and charging huge admin fees, adding a % onto the cost of any works.

They arent buying them for the good of their health or slow steady returns this is a huge money making operation at the expense of poor naive souls who happen to like a house enough to buy it and Solcicitors who seem to bypass / gloss over the real detail of the Freehold / Leasehold implications.

There is a huge groundwell of protest against these Leasehold houses and I don't think anyone should be supporting or approving them.

If OP goes ahead I hope he has very deep pockets.

jdc23

Don't worry, I am using my own independent Solicitor. I was offered £500 to use Persimmon's recommended one, but I wasn't drawn in!

The roads will be adopted by the local council, this has happened with all previous phases of this development once all house building is complete and the roads are made good. The council put up little temporary signs on the lamp posts to say they have adopted the road.

I have discussed the possible purchase of the Freehold with my Solicitor and I am aware we are able to purchase after two years of living in the property. My Solicitor has suggested that it may only be worthwhile looking at purchasing the Freehold when we come to sell the property. However, they have also said that due to the terms of increasing by RPI, it may never actually make financial sense to do so.

pimento

jdc23 wrote: »

I have discussed the possible purchase of the Freehold with my Solicitor and I am aware we are able to purchase after two years of living in the property. My Solicitor has suggested that it may only be worthwhile looking at purchasing the Freehold when we come to sell the property. However, they have also said that due to the terms of increasing by RPI, it may never actually make financial sense to do so.

This is where you find that Persimmon will have sold the freehold to a separate company and the price will have sky rocketed.

I would not buy a leasehold house. I don't think I'm alone.

martinsurrey

BBH123 wrote: »

The maintenance charge is indepoendant of the Freehold but who owns / manages the Freehold can have a huge impact on likely costs.

and like on every large new estate the freehold of the communal areas is owned by a management company, which is independent of the owners of the freehold of the leasehold houses

the property investing companies have no interest in the Freeholds other than maxing the money that can be made by pushing the boundaries of the Lease to the max and charging huge admin fees, adding a % onto the cost of any works.

you are right that they want to make money, but their income stream is 100% contractual, and like every leasehold property OP can buy the freehold for their plot at a leasehold tribunal rate, and at RPI increases it wont be very high

They arent buying them for the good of their health or slow steady returns this is a huge money making operation at the expense of poor naive souls who happen to like a house enough to buy it and Solcicitors who seem to bypass / gloss over the real detail of the Freehold / Leasehold implications. you are wrong, the biggest buyers of freehold reversions are pension schemes, who want slow steady returns.

There is a huge groundwell of protest against these Leasehold houses and I don't think anyone should be supporting or approving them.
mainly from people who don't understand the detail, or the difference between freeholder/management company or the difference between an rpi increase and a 10 year double

If OP goes ahead I hope he has very deep pockets.

more comments above

[Deleted User]

I'm sorry Martin i just don't agree.

martinsurrey

pimento wrote: »

This is where you find that Persimmon will have sold the freehold to a separate company and the price will have sky rocketed.

I would not buy a leasehold house. I don't think I'm alone.

how any times does it need to be said.

the price will be set independently by a leasehold tribunal, if the owner doesn't agree a price with the buyer.

the price is set by them with reference to the present day value of the income stream, and at RPI increases that income stream isnt that valuable.

again, showing that the people making the biggest noise, don't understand the process.

jdc23

pimento wrote: »

This is where you find that Persimmon will have sold the freehold to a separate company and the price will have sky rocketed.

I would not buy a leasehold house. I don't think I'm alone.

That may or may not be the case, we will see. If it does happen, then as I suggested, this will be a situation in which it will not make financial sense to buy the Freehold. So we won't and will sell the house on as Leasehold.