Buying new build leasehold

mz1992

Hi everyone,

My other half and I are looking at a property by Eccleston in Manchester. Their new builds are being sold on 999yr leases with ground rent increasing with RPI every 10 years. Sales assistant says we can buy the freehold up front for around 20x the ground rent which makes its roughly £4,000.

I’ve read a lot about the scandals around new build leaseholds and how we’re in the progress of getting rid of them.

Question is, is it worth buying the freehold given the above scenario? Anyone else bought their freehold upfront and had any issues? Can the freehold price be added to the mortgage?

Thanks in advance!

knightstyle

YES buy it as it will make the house much easier to sell in future.

eddddy

mz1992 wrote: »

Question is, is it worth buying the freehold given the above scenario? Anyone else bought their freehold upfront and had any issues? Can the freehold price be added to the mortgage?

Presumably, you wouldn't be buying the leasehold and freehold separately - you'd just buy the freehold in a single transaction.

So you'd just be buying a freehold house (like most house purchases), for a single agreed price.

So there's no concept of a separate price for the freehold, to be added to the mortgage.

If you've already applied for a mortgage, I guess you need to inform the lender that you are now buying a freehold house, not a leasehold one. And that the purchase price has increased (by about £4k).

ANGLICANPAT

Theres a FB website that may be of use to you too https://www.facebook.com/groups/786983251448976


and this one to calculate cost of FH maybe http://www.freeholdcalculator.com/freehold_simple.php

Tom99

Paying an extra £4,000 for a freehold rather than a leasehold with a £200pa ground rent is a no-brainer. Providing of course the property is worth the total price you are paying.
This is really only a marketing ploy, get you hooked, then get another £4,000 out of you.
You could always say 'I assumed the property was freehold so I won't be offering anything extra'