Buying leasehold Redrow (7 years old) will i be able to buy freehold?

ryankirkpatrick2

Hi all, just wondering if anyone has any experience of buying a 'second hand' new build. We have seen a lovely 4 bed Redrow house for sale and would like to proceed with an offer, however the property is leasehold. It was built in 2012. Does anyone know if Redrow will still own the freehold or will they have sold it to another company? Does anyone know roughly how much I would be expecting to pay to buy the freehold? I have heard a lot of horror stories regarding leasehold and do not want to be caught in the trap.

D_M_E

After 7 years it's most likely to have been sold on - expect to pay somewhere around £35000 to £40000 to whoever they sold it to in order to buy it - this estimate includes or should include all solicitor/conveyancing fees.

If you do buy you should make sure all restrictive covenants are removed, especially the freeholder's ability to charge various fees for whatever they can think of.

AdrianC

ryankirkpatrick2 wrote: »

Hi all, just wondering if anyone has any experience of buying a 'second hand' new build.

About 90%+ of house buyers in the country are buying "second-hand new-builds". Or, as they're usually and more simply known, "houses"...

We have seen a lovely 4 bed Redrow house for sale and would like to proceed with an offer, however the property is leasehold. It was built in 2012. Does anyone know if Redrow will still own the freehold or will they have sold it to another company?

Could be either. Your solicitor will tell you, or search the Land Registry and find out who owns the freehold currently.

Does anyone know roughly how much I would be expecting to pay to buy the freehold?

There are statutory routes to calculate the freehold cost, if you meet the criteria.
https://www.moneysavingexpert.com/mortgages/buy-freehold-right-to-manage/

I have heard a lot of horror stories regarding leasehold and do not want to be caught in the trap.

The horror stories aren't about all leaseholds. They're about the ones that have punitive ground rents - doubling each decade. Even doubling-every-25-years is really not that big a rise, and could work out cheaper than inflation.

What's the ground rent and the increase regime on this place?

daveyjp

Its a question for the agent - make an offer subject to the freehold matter being clarified.

You would also want the freehold matter dealt with at the same time as the purchase.

Be aware even with a freehold you may still be liable for ongoing maintenance charges - these can be far more onerous than the ground rent.

ryankirkpatrick2

Ok, I've found out that the company that holds the lease is Mainstay Residential. The lease has 991 years left and has no terms which state the ground rent increases. The man I am potentially buying from has told me that one of his neighbours bought their freehold for £4000 however I'm unsure if this was before the developer sold it on. The owner says the rent Is £200 per year. Should I be worried or am I overthinking things? I cant believe they get away with selling the ground your house is built on, as if they don't make enough money from the sale of the house.

BMilo1

Please do your research before buying a leasehold house - look up the National Leasehold campaign on Facebook. The fact that the house it Leasehold should be ringing alarm bells with you, I would walk away from the purchase before it's too late!