Buying Leasehold House - Renovations/Extension query

Maximus15

Hi


After some much needed advice as unsure how to proceed!


I recently viewed a leasehold house which has approx 950 years left .


We made an offer of £156,000 which has been accepted, but this house needs major renovation, internal and external and we would hope to put a single story extension on it pretty much straight away, as soon as planning permission was granted really.


My issue is the freeholder. Having to ask them permission for every little alteratiom puts me off as I have no idea the cost of this or what it involved.


Has anyone else built extensions or made major changes to thier leasehold homes? I would like to hear peoples experiences if possible.


Is this going to be a complete nightmare?!


We would hope to buy the freehold eventually , but again, its something I know nothing about in terms of cost/time/possibility.


Much appreciated for any input!

troffasky

After two years you have the right to compulsorily purchase the freehold:

https://www.lease-advice.org/advice-guide/houses-qualification-valuation/

Your best guide to how much this is likely to cost will be judgments from the First Tier Tribunal for similar cases near you. In every decision I've read, a long lease with low rent is effectively valued at £0 and "all" you have to pay is the freeholder is their costs [and you have to pay your own, obviously].

I found this guide easier to read than Lease Advice's:

https://www.pglaw.co.uk/wp-content/uploads/2013/10/A_Short_Guide_to_Enfranchisement_Web.pdf

Before two years, you could try asking the freeholder what their price is?

davidmcn

Maximus15 wrote: »

Having to ask them permission for every little alteratiom puts me off as I have no idea the cost of this or what it involved.

Have you actually checked the lease to see what you need their consent for?

Maximus15

I've searched the land registry and I've found out that 3 doors down purchased the freehold in 2013 for £850, which isnt too bad I guess, probably set me back a few grand with fees but worth it in long run.

I've heard conflicting info about the 2 year wait, someone has confirmed what you said, and that I would have to wait 2 year before applying , but another said that only applies to leasehold Flats, houses freeholds can be bought at any stage, confused!

G_M

davidmcn wrote: »

Have you actually checked the lease to see what you need their consent for?

...............................................................................???

Maximus15

Trying to obtain a copy! The estate agents don't have one, but assured me my solicitor would receive one in due course.

Few doors away have recently in the last 2 years built a huge 2 story extension on the side and extended out the back - They are leasehold so can't envisage any issues.

Friend recommeded I give them knock and just ask them if they had any hassle but its early doors and I dont know if this is too invasive? Some people are funny!

Maximus15

G_M wrote: »

...............................................................................???

replied below, sorry forgot to quote you in it.:)

troffasky

Maximus15 wrote: »

I've heard conflicting info about the 2 year wait, someone has confirmed what you said, and that I would have to wait 2 year before applying , but another said that only applies to leasehold Flats, houses freeholds can be bought at any stage, confused!

If you want to buy it before two years then you'll be doing it on the freeholder's terms.

arifmunshi

You mentioned you searched the land registry for the freehold purchase prices, could you send me link on how to search for this please?

eddddy

Maximus15 wrote: »

I've heard conflicting info about the 2 year wait, someone has confirmed what you said, and that I would have to wait 2 year before applying , but another said that only applies to leasehold Flats, houses freeholds can be bought at any stage, confused!

To get the statutory right to buy the freehold, you have to own it for 2 years.

But you can informally negotiate to buy the freehold at any time.

Leasehold Houses – Buying the freehold – Qualification and procedure

The Leasehold Reform Act 1967 (the 1967 Act) gives leasehold tenants of houses the right to buy the freehold. The right to compulsorily purchase the freehold (and any intermediate leasehold interest, e.g. head lease) is termed enfranchisement.

...

A qualifying tenant must be the leaseholder of the house at the time of application and must have held the lease for the past two years.

Link: https://www.lease-advice.org/advice-guide/houses-qualification-valuation/