My mother has a LEASEHOLD HOUSE and I've only just found out, as has she!!

jemimavintage_2

Hi - yes, she didn't get a great education and so doesn't always pay full attention to important matters. That's what has happened here. She bought her house and didn't involve me in every single detail, and it now turns out she's bought a leasehold properly and not a freehold property.. 

I only found out because she asked me to have a look at the value of her house and how it may have changed with covid (as I also check on the value of my own house too). She doesn't use the internet and WON'T use the internet. Even if THE QUEEN herself offered my mother internet lessons, she would say no. She thinks the internet is 'evil'..    ...so it's always down to me to do 'all internet works'.. 

Ok, so, I asked her if she knew it was leasehold and the penny dropped for her that she'd been paying a regular small amount of money (I don't know how much at this stage but really not a lot.. She described it was 'only coppers'...).. She then pulled out a letter she had received the week before, offering her the lease for £650. I've checked land reg and the company who say they own the freehold DO own the freehold. It had 999 years put on it in 1814 but I would STILL like her to have the freehold just incase it went anywhere else and her small amount of charges suddenly changed to a higher amount. She's only on a basic state pension. 

The letter from the company who own the freehold says that they will pay all legal fees and literally, to sell it to us, it is simply a one off charge OF the £650. 

I don't really have the money for a solicitor to check this and that out, and neither does she. 

What are peoples views on whether we'd probably (on balance) be ok trusting this company (Compton Group) to sell us the freehold, as per their letter. The offer is only standing until September. Also, is there any point in me trying to barter them DOWN in price or does £650 sound like a snip? The house is in Lancashire. 

Thanks in advance for any and all comments. Please feel free to be as open as you like. I won't be offended by.... anything anyone has to say because it could be something useful to me making progress here. 

J 

AdrianC

So how much is she paying in ground rent?

TBH, though, £650 inc legals sounds like a good deal. I think I'd just take them up on it...
On the one hand, she's got a VERY long lease and presumably near-as-dammit-peppercorn GR.
OTOH, all those people who (like you...) go "OoooOOOhh! Leasehold! <red pen>"

Jeepers_Creepers

Yes, that's very reasonable, so I doubt there's room to barter them down on it. Little harm in trying, tho', as the chances are that the Freeholder knows it's not a money-spinner, so would rather get rid. Are the neighbouring houses in a similar position?

As said above, with such a long term remaining and a small 'rent' charge, it probably doesn't matter much - financially - either way. But - as also said above - it will almost certainly make it more sellable as you will now own everything - the property and the land beneath it - and that's a very emotive thing to Brits. When your mum comes to sell it on, I'd happily bet she'll recoup the £650 outlay easily, by it simply being more desirable. 

If it were me, I'd go for it. I think...

steampowered

You can search the lang registry yourself to check the title register for the property - it only costs £3. That will tell you the full legal name of the freeholder. You can compare that to the company offering to sell the freehold to check whether they are in fact the freeholder.

It sounds like the fact that this house is leasehold vs. freehold doesn't actually make any difference here. The leaseholder can only charge what's in the lease - and it doesn't sound like the charges are very much.

But, a lot of people prefer owning the freehold, so freehold may be easier to sell - which is worth £650. I would take them up on it.

Davesnave

It's not worth shouting about.

As I'm forever pointing out on here, my first leasehold house cost me just over £9k and it last sold still leashold in 2014 for £340k so the lease didn't seem to be putting people off! I'm sure they could buy it easily. Like your Mum's, the remaining lease was for hundreds of years and the rent was some silly amount, which was never collected in my 10 years ownership.

If it hasn't caused you Mum any hassle to date, why buy the lease? Well....I suppose because people like you go AAAARRRGGGGHHHH! LEASEHOLD!!!

gwynlas

A friend of mine once worked for an estate agent and used to but freeholds for very little money as small investments. Often it was only worth him collecting the ground rents every few years as they were so small. His profit came when people wanted to purchase their freeholds but it was still not a lot. £^50 sounds quite reasonable and is probably worth it for the peace of mind.

steve866

If I saw a house for sale listed as leasehold it would instantly rule it out for me. £650 sounds like a good deal. 

Emmia

For £650 I'd do it, it will probably make the property more desirable from a selling point of  view, and £650 isn't a huge amount of money.

zagubov

Absolutely, some buyers would freak out at the word Leasehold just like some freak out at Japanese Knotweed.
That price would be bargain.

Unicorn_cottage

zagubov said:

Absolutely, some buyers would freak out at the word Leasehold just like some freak out at Japanese Knotweed.
That price would be bargain.

For good reason.

davidmcn

An ultra long leasehold with peanuts ground rent and no onerous covenants is for all practical purposes freehold, so I wouldn't get very excited about it either way. £650 for eliminating the risk of paranoid leasehold-averse buyers is probably worthwhile though.