Buying Leasehold

Rich_Pauper

I have searched the forum for some guidance re this matter but I have not found any. If my query has already been answered pl point me in the right direction.

I have been living in a leasehold property for the last 23yrs and I am considering buying the Lease off the freeholder. My question is what are the benefits and is the cost reasonable, btw I live in Sheffield?

I haven’t checked for definite but I think we have about 60- 70 yrs lease left, so I know it will need renewing at some point. We are not in the process of moving yet.

We pay £17.50 yearly for the lease.

I have contacted the Freeholder through the agents and following is their response: -

“We have now received a reply from our client who although not wishing to sell at this time, would be prepared to dispose of their freehold lnterest in the property for £1250.00 plus legal costs for both parties. Our administration fee would be £120.00 including VAT.”

In 2015 when I enquired, they quoted £1000 + legal fees.

Is the price reasonable? should I wait for the Gov reforms to happen? should I negotiate the price, if so on what basis? Anybody has a rough estimate of how much the legal fees will come up to?

Thanks

AdrianC

You are below 80 years remaining, so your house is likely to be unmortgageable without extending the lease. The marriage value will be increasing rapidly.

A grand and a bit plus legals, when you're down to 60-70yrs lease remaining? Grab it. Of course you can ask to renegotiate, but you're already gaining a huge benefit from the purchase.

As far as government reforms... they've said they might perhaps do something at some point in the future. No more than that. They haven't published any draft legislation yet, nor given a timescale. When they do. it has to pass through both houses of Parliament, with amendments to the drafts possible at any stage. The chances of the relevant minister(s) and/or PM changing between now and the next election in May 2024 are high - even before we consider them simply not bothering to do anything...

buglydb

That’s a bargain, buy it. I’ve just paid over £5k for mine this week. 

smallbiznewbie

I too live in Sheffield. There's an excellent and extremely long thread at sheffieldforum.co.uk/topic/343796-coppen-estates-sheffield about buying the 'freehold reversion' . Jeffrey Shaw is the expert whose advice is worth listening to. Essentially after two years of living in a property that has ground rent you have the legal right to purchase the freehold reversion. However, if you're dealing with the awkward squad they can make life difficult and almost charge what they want, with the threat of the high cost of mediation. That thread gives lots of advice and warnings. If they're offering you the freehold reversion at the price you state then take it (but read the thread first!)

Rich_Pauper

Thanks for all your advise. smallbiznewbie, I will have a look at the link

Rich_Pauper

I just wanted to provide an update. I made a mistake in my initial post – I actually have 734 years left on my lease. Following advice from smallbiznewbie and after reading the forum, I contacted Jeffrey Shaw. I can't thank smallbiznewbie enough! Jeffrey Shaw was excellent; he calculated the cost and made a final offer of £500, along with the legal costs, but the owner declined.

My neighbor and I decided that we would prefer to pay the cost of the tribunal rather than pay more to the Freeholder. We then proceeded by hiring a conveyancer. At that point, the Freeholder agreed to our offer. All credit goes to Jeffrey Shaw, who pointed out to the Freeholder the pitfalls and hurdles they would face in winning the tribunal, as well as the potential costs involved.

I haven't yet paid the final amount, nor have I received the revised Title document yet, but I am confident it will go through.

Jeffrey_Shaw

smallbiznewbie: as to your last post [yes, it's I whom you mention!], that's true ONLY for a house's leaseholder.

The law is quite different for a flat.

As to the thread's title, that's wrong as well! What it means is "Buying a freehold reversion".