Advice needed on freehold!

eddddy

danlightbulb wrote: »

Because the lady who owns the lease doesnt own the fabric of the building. Her lease will expire in X years, does contributing to the building repairs give a lease extension, no. So what benefit is this person getting from the deal? Essentially, her home value is being eroded to nothing over the lease period. Whilst the freeholder will still have a saleable and likely increasing in value asset.

Its a fundamentally unfair situation. Forced to pay to maintain something you dont own and can never realise the value of.

Most leases last 100+ years.

Why would a freeholder agree to pay £5k for repairing a wall today, when he/she won't get any benefit from that wall for 100+ years?

It's the leaseholder that gets the benefit of that wall for the next 100 years.


Alternatively, if you want to buy a 100 year lease of a flat from a freeholder, and you want the freeholder to pay for all the repairs for the next 100 years...

... I guess that would push the price of a flat up from, say, £200k to perhaps millions. (Bearing in mind how inflation will increase the cost of repairs and maintenance over the next 100 years.)

I'm not sure that would help many people.

Fire_Fox

danlightbulb wrote: »

Because the lady who owns the lease doesnt own the fabric of the building. Her lease will expire in X years, does contributing to the building repairs give a lease extension, no. So what benefit is this person getting from the deal? Essentially, her home value is being eroded to nothing over the lease period. Whilst the freeholder will still have a saleable and likely increasing in value asset.

Its a fundamentally unfair situation. Forced to pay to maintain something you dont own and can never realise the value of.

The other leaseholder may (should) have been offered the opportunity to buy a share of the freehold ('collective enfranchisement') when it was last sold. It was their decision whether to act upon the legal documents they (should have) received. It is also the other leaseholder's choice when to extend their long lease, sooner being cheaper than later.

Being a freeholder can be more hassle than it is worth, depends entirely on the property and the other leaseholder(s).

Mollin

Thanks all for the help - I am looking into the section 20 consultation. Much appreciated.