Selling a freehold

Cathm

My parents have just received a solicitors letter asking them to transfer the freehold of a house they sold 30 years ago to the current house owners who are trying to sell it. Should they just sign it over or can they sell the freehold? The house is being sold for £155k and we believe it will have 51 years left on the freehold.

eddddy

Cathm wrote: »

My parents have just received a solicitors letter asking them to transfer the freehold of a house they sold 30 years ago to the current house owners who are trying to sell it. Should they just sign it over or can they sell the freehold? The house is being sold for £155k and we believe it will have 51 years left on the freehold.

You need to give a bit more information.

Do you mean your parents sold the leasehold of a house 30 years ago, but kept the freehold?

And now the lease only has 51 years left?

If so, the freehold could be quite valuable (maybe tens of thousands of pounds).


Edit to add...

Or was it agreed that the freehold was being sold 30 years ago, but an error was made in the transfer? (If it was an error, the situation may be different.)

macman

It should be worth a decent sum, as with only 51 years left on the lease, it will be unmortgageable. Why would they just 'sign it over' for nothing?
Your other option is to offer to extend the lease.

G_M

Much more information needed about what happened 30 years ago.

And the terms of the lease.

Have your parents been collecting annual ground rent? Or otther fees/charges? Have they had any responsibilities as to the leaseholders?

AnotherJoe

As said, more info..

Is this to correct a mistake that was made when the freehold property was sold but the deeds / land registry was never transferred but it should have been, or did they sell a leasehold property and keep the freehold ? Two very different scenarios.

From the sound if it it seems more likely to be to correct a mistake because otherwise why would they just ask for it to be transferred, they’d ask what price was wanted to sell it.

So, please clarify.

Cathm

Thanks for the replies. The answer is we don't know... My parents who are now in their 70s remember buying their house and paying extra for the freehold but can't remember what happened when they sold it. The letter is from the solicitors of the potential buyers, rather than the current house owners. The freehold actually only has 43 years left. I have been told there maybe tax implications for my parents if they just sign it over as it could be seen as "gifting" something of value. Land registry still has the freehold in my parents name and leasehold as the current owners.

Cathm

And no, they haven't been collecting any ground rent or any other fees.

davidmcn

Cathm wrote: »

The freehold actually only has 43 years left.

As above, I think you mean the lease only has 43 years left. Freeholds last indefinitely.


What exactly does the solicitors' letter say? (as I suspect they have more information than any of us!)

Cathm

Yes, sorry, the lease has only 43 years The letter says "we presume you were unaware that the freehold title is still registered in your name and that you will have no objection to it being transferred to the house owners to they can sell both the leasehold and freehold titles to their buyer." They have enclosed a transfer deed for them to sign.

Lokolo

The question is

Do they want the freehold? I would assume not if they haven't been collecting any ground rent.

if this is the case, they need to put value to it. The house is being sold for £155k. Is this the value of the property as a freehold, or is it the value of the property with a 43 year lease?

A freehold property vs. a 43 year lease property will have a huge different in valuation.

Cathm

They're happy to transfer/sell the freehold. I think the value of the house is as freehold.