Buying a leasehold house

angelasocks

Hi

Buying a house which I was lead to believe by the seller is a freehold.  Turns out it's leasehold 999 years lease.  Buyer said he has never paid ground rent so he just thought it was freehold. 

Some of the properties on the street have bought the leasehold.  I rang solicitors to ask if it was possible to buy the lease hold on the property I'm buying but I won't find out for weeks.

Land registry showed that someone bought the lease in 2018 but I don't know who or why they would buy the lease on property that doesn't return any ground rent.

It really has got me panicked and I don't know what to do part of me feels like pulling out.

Any help appreciated.

Thanks

user1977

Why are you panicking? 999 years is nearasdamnit freehold.

angelasocks

Because the leasehold was sold to someone in 2018, I don't know who without more land registry searches.  But why would someone buy a leasehold on a property when there is nothing in it for them (ie no ground rent)

I hate the thought of not owning the land my house sits on btw - don't know why just do.

user1977

Do you mean the freehold was sold? The leasehold is what you're buying. The freehold may well include other land of more value than just "your" house. 

The freeholder's rights are subject to whatever the lease says. A 999 year lease typically isn't going to give them much of an input into anything, or much ground rent (which is why they often don't bother even collecting that). Your solicitor tells you what the lease says.

angelasocks

Yes sorry freehold was sold.  I've just downloaded the title register for the freehold - legal speak don't understand much of it. 

Just odd that someone would buy a 999 lease with nothing in it for them. 

I'd really rather buy the freehold but won't know if that's possible until after I buy the property.

eddddy

angelasocks said:

Just odd that someone would buy a 999 lease with nothing in it for them. 

A leasehold property will have a lease. The lease will contain covenants (or rules) that the owner has to adhere to.

Those covenants (or rules) might include things like:

• No alterations to the property without the freeholders consent (which involves paying the freeholder a fee)
• No running a business from the property
• Notifying the freeholder each time the house is sold (and paying the freeholder a fee)
• Rules about insurance (which might involve paying the freeholder a fee)

• Plus you might have to pay a few hundred pounds to the freeholder for a management pack, when you decide to sell the house

If you buy the freehold, you will no longer have to adhere to many / most / all of those of those rules.

angelasocks said:

I'd really rather buy the freehold but won't know if that's possible until after I buy the property.

It's possible to buy the freehold at any time - if the freeholder agrees to sell it to you, an d you can both agree on a suitable price.

There's also a way for you to 'Compulsorily Purchase' the freehold - but I suspect that wouldn't make financial sense in your case.

angelasocks

Thank you Eddddy 

Don't know leaseholder covenants rules yet.

From what you're saying and my own quick internet searches I can buy the freehold which I'd prefer to do but I need to look into this one a bit more.

Appreciated

user1977

eddddy said:

angelasocks said:

Just odd that someone would buy a 999 lease with nothing in it for them. 

A leasehold property will have a lease. The lease will contain covenants (or rules) that the owner has to adhere to.

Those covenants (or rules) might include things like:

• No alterations to the property without the freeholders consent (which involves paying the freeholder a fee)
• No running a business from the property
• Notifying the freeholder each time the house is sold (and paying the freeholder a fee)
• Rules about insurance (which might involve paying the freeholder a fee)

• Plus you might have to pay a few hundred pounds to the freeholder for a management pack, when you decide to sell the house

If you buy the freehold, you will no longer have to adhere to many / most / all of those of those rules.

Though bear in mind that freehold properties can come with a long list of rules. In fact a modern freehold house could have many more restrictions and costs attached to them than an old ultra-long lease.

angelasocks

It's a 1950(ish) property, quite anxious to find out the covenants although seller said he has never paid any ground rent and has run his business from the property.  But I'd like to see any restrictions myself.  

Also found https://www.lease-advice.org/   and booked a slot for a phone call.  New territory to me all this.

Thanks again Eddddy

gwynlas

In certain parts of the country particularly mining areas land was sold leasehold for building with miniscule ground rents that these days are only worth collecting every five years or so. The  freehold land that your house stands on might have been sold as part of a large bundle of such pockets of land rather than an individual plot. Once you know who owns the freehold it is usually quite a simple process to buy it and your solicitor can do this as part of conveyancing

angelasocks

Thanks gwynlas - I found out who owns the freehold (downloaded from Land Registry).  I rang solicitor today who told me I won't find out about the rules of the lease until enquiry stage.

I suppose my concerns are that the freeholder won't sell me the freehold and it has to go to through some expensive tribunal.