Just found out house we're buying is leasehold. Help!

Prinzilla

Hi,
My partner and I are in the process of buying our first home. the vendor and estate agents both told us the property was freehold before we put in the offer but our solicitor mentioned in passing today that leasehold transactions are more complex. I told her we thought it was freehold but she confirmed it is in fact leasehold. What can we do? We put in the offer and got the mortgage based on the property being freehold, we've already paid the mortgage broker fee and the solicitors half upfront for the conveyancing! I don't think the vendor lied intentionally, I truly believe she just didn't realise as she has shared ownership of the property at the moment, with a housing association owning the other half. Really would appreciate some advice as we've no idea what to do!
Thanks

[Deleted User]

Never buy a Leasehold house however if its a flat Leasehold is more common.


It sounds like the lady selling has got her terminology muddled up and tbh sounds rather complicated.

hazyjo

I suppose there are four obvious options. I suppose you either:


- See if she'll buy the freehold as part of the sale


- Reduce the price to what you think a LH house might be worth


- Buy it anyway at the agreed price


- Withdraw and start again




I would want prob go with the first option, although it's possibly the least likely that the vendor would want to do.


It's tempting to continue, I know. Many still would. Is it a newer house or an old one? Still common in parts of England. I would not buy a LH house, but that's just me. How many years left on the lease, and is there a service charge?


Good luck.

Red-Squirrel_2

Find out the details of the lease before you do anything, costs of service charges, ground rents, any restrictions etc.

Slinky

Is it even possible to have freehold on shared ownership?

Smodlet

I'd walk, personally.

Prinzilla

Thanks for the reply.
I don't think she's in a position to buy the freehold herself as there's been a couple of indications she doesn't have much capital (other than her share of the house)

The house is 20 years old and ex council, I've just got off the phone with the estate agent who also wasn't aware it was a leasehold. He's pretty confident it will be a long lease and as it will more than likely be owned by the housing association who are non profit the payments won't be much.
He's getting in touch with her solicitors so we can get a copy of the lease.

Prinzilla

Slinky wrote: »

Is it even possible to have freehold on shared ownership?

We were told that was the case, we're both first time buyers so didn't question it.

hazyjo

Ex-LA will lose you a percentage of future buyers, and LH will lose you some more. That's enough for me to walk. Especially in light of it being only 20 years old. They're doing away with LH for houses soon AFAIK and I'm not sure what will happen to houses like this that are still relatively new and LH. If it was say a 1940s house in a part of England that comprised lots of LH houses, I'd maybe have been expecting it.

Smodlet

If it is ex-council, is it a terraced house? If so, I would ask your solicitor to check if there is any risk of your being liable for repairs to roofs other than your own/communal areas such as passages/whatever. This is a given with ex-LA flats, not sure on houses.

Even if it is a semi and there is a communal chimney, you could be liable for repairs to that. Leasehold is more trouble than it is worth, imho, and the extra you pay for a freehold property you could make back over time by not having to pay service charges/other people's repair costs. Just my view.

Prinzilla

Smodlet wrote: »

If it is ex-council, is it a terraced house? If so, I would ask your solicitor to check if there is any risk of your being liable for repairs to roofs other than your own/communal areas such as passages/whatever. This is a given with ex-LA flats, not sure on houses.

Even if it is a semi and there is a communal chimney, you could be liable for repairs to that. Leasehold is more trouble than it is worth, imho, and the extra you pay for a freehold property you could make back over time by not having to pay service charges/other people's repair costs. Just my view.

It is terraced, no shared land though other than the driveway. There's no chimney either. I'll read through the lease when we get a copy and go from there. Tbh I'm more annoyed we've paid the mortgage brokers and the solicitors as if we'd have known we wouldn't have put an offer in and now if we withdraw we'll lose it all. All because the vendor obviously didn't understand a question :mad: