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

Tiglet2

Never believe anything a vendor tells you.
Never believe anything an EA tells you.
If you don't want to incur solicitor costs before finding out basic information such as this, go onto the Land Registry website and download a copy of the registered title and plan for £3 each document. Better to lose this amount than hundreds spent on fees, surveys and searches. The registered title will state whether the property is freehold or leasehold.

Prinzilla

Tiglet2 wrote: »

Never believe anything a vendor tells you.
Never believe anything an EA tells you.
If you don't want to incur solicitor costs before finding out basic information such as this, go onto the Land Registry website and download a copy of the registered title and plan for £3 each document. Better to lose this amount than hundreds spent on fees, surveys and searches. The registered title will state whether the property is freehold or leasehold.

Thank you! I had no idea you could do that, at least I know for next time.

Prinzilla

muz3562 wrote: »

The EA is always going to hide behind a clause which says any information they give is indicative only and not to be relied upon . Its wrong that they can make such a blatant mistake but ultimately they are not legally qualified to be ascertaining the exact interest in the property is that is what a conveyancer does . This is only like finding out after a survey that the EA's "well maintained property" actually has dry rot , substantial damp or some other massive structural issue or finding out during conveyancing that there is bad title or some other issue raised by local searches .



I would speak to the solicitor again tomorrow , press them for answers to questions about the lease if they know its a leasehold they should have asked for a copy of the lease .



I know the price has been lowered already , but I would speak to the agent letting them know its a LH and that this is going to massively reduce the selling potential . Because of this you are now forced to reconsider the offer .


Has anybody spoken to the mortgage lender about the fact that it is a Leasehold not a freehold as would have been included in the original application . This could also put a spanner in the works .

Thank you for the advice. I emailed the mortgage broker yesterday to inform him and he's calling me today. The mortgage application was submitted stating the property was FH so this is another worry.

ciderboy2009

OP - I wouldn't panic too much about it being leasehold until you know the full terms of the lease.

The problem leaseholds are the more modern ones where the rent doubles every x years. Older leaseholds tend to have a minimal rent which doesn't cause a problem.

The most important thing is to find out how many years are left on the lease - the mortgage company will ask for this before they decide whether or not to withdraw their mortgage offer.

hazyjo

I wouldn't be blaming the EA. I've never known them check anything - they go by what the vendor tells them.


You won't be able to claim anything back from the vendor.


Still don't trust there's no service charge - get your solicitor to check that. If there is, or if there is a management company you have to deal with for absolutely anything, you may find there's a bill of a few hundred quid for a management pack when you come to sell it on. Is there a separate garage? Any flats above it if so?

Prinzilla

hazyjo wrote: »

I wouldn't be blaming the EA. I've never known them check anything - they go by what the vendor tells them.


You won't be able to claim anything back from the vendor.


Still don't trust there's no service charge - get your solicitor to check that. If there is, or if there is a management company you have to deal with for absolutely anything, you may find there's a bill of a few hundred quid for a management pack when you come to sell it on. Is there a separate garage? Any flats above it if so?

IFA has said we would have a case against the vendor as she provided incorrect information. I don't blame the EA, I don't think it's their mistake but either way I'd rather sort the lease out somehow and have the house than go down that road.

I've still had no reply from our solicitor and the EA dealing with the house is off today so I don't know if the vendor's solicitors will provide a copy of the lease.
No separate garage, the driveway is shared with a neighbour.

Prinzilla

ciderboy2009 wrote: »

OP - I wouldn't panic too much about it being leasehold until you know the full terms of the lease.

The problem leaseholds are the more modern ones where the rent doubles every x years. Older leaseholds tend to have a minimal rent which doesn't cause a problem.

The most important thing is to find out how many years are left on the lease - the mortgage company will ask for this before they decide whether or not to withdraw their mortgage offer.

That was my thinking, I'd be more worried if it was new build with the land owned by the developer. I'm pretty confident the land is owned by the housing association that currently has 50% share in the property. I think we'll try and buy the freehold before withdrawing, we do want the house.

JimmyTheWig

Bass_9 wrote: »

I used to have this mentality, but a leasehold house is not necessarily an issue.

But it has to affect the value of the house.
If when the OP comes to sell the people who would have offered the highest price have the same point of view as some on this thread then the highest actual offer will be lower because it is a leasehold.
That will be the case whether or not you think that point of view is right or not.

But if the lease is reasonable and the price is right I see no reason not to go ahead.

hazyjo

I'd never touch a house with a shared driveway (in any form) - a third reason why I'd not buy. Careful you're not alienating too many buyers when it comes to selling. Has it been on the market long?

Waterlily24

hazyjo wrote: »

I'd never touch a house with a shared driveway (in any form) - a third reason why I'd not buy. Careful you're not alienating too many buyers when it comes to selling. Has it been on the market long?

Me too, our first house had a shared driveway - never again lol.