Leasehold query

Woodee

I've just had offer on house accepted but a bit concerned as it is leasehold.  When I viewed the property, the seller informed me she's lived in the house for 5 years and never heard anything from any management company, and therefore never paid anything.  She also said she checked with the neighbours and that they have never paid anything or heard from the company.  She said she had heard that the company who owned the land had gone into bankruptcy.  All this leaves me uncomfortable as I don't want an unexpected bill through the door if I complete.  Any suggestions would be really appreciated thank you.   

bouicca21

before you start worrying check the lease and see how long it has to run, what the ground rent is and whether there are any restrictive clauses.  The chances are that this is a long lease with ground rent so minimal that it isn’t worth collecting.

eddddy

As a starting point...

• Is this a very old lease (e.g. originally 999 years) with a low ground rent (maybe £5 per year)?
• Or a modern lease, perhaps with a high ground rent?

Check the lease to see what, if anything, the freeholder (or their management co) is required to do. If they are required to maintain private roads, car parking, landscaped areas - you'd probably be charged, if/when they do this.

If the lease doesn't require the freeholder to do anything, they'll be nothing they can charge you for - apart from ground rent.

(Although, if the lease says things like you must get consent for alterations, the freeholder can charge a fee for giving consent.)

greatcrested

Checking the lease is the answer.

Your conveyancer will do this, or if you are at an early stage you could get it yourself if it is lodged at the Land Registry.

* Download the leasehold Title for £3 here (and read it - always a good thing to do)

* apply for the paper copy of the lease on form OS2  here (£6).

amylan

Would also suggest discussing an absent freehold indemnity policy with your solicitor but do bear in mind when you come to sell the property, you will be on the receiving end of the same issues you're considering. Also, if you are looking to pursue a lease extension at any stage, this can also prove to be more complex.