Persimmon Leasehold - Option to Buy

RedBerry_95

Hi All,

Hoping one of you has experience with this as I can't find the answer anywhere.

We are looking at buying an 8 year old Persimmon built home. Current owner has owned from Brand New. The house is currently leasehold. I'd like to avoid leasehold if possible.

Persimmon also have a scheme in place where you can buy the freehold for max £2k

We've looked at 2 options.

1. Current owner buys the freehold before we complete - Anyone know the timescale for this?

2. We buy the property as leasehold, include in price negotiations and then buy the freehold ourselves. - However, I know the government right to buy scheme is a minimum of 2 years ownership. Does anyone know if this is the same with Persimmons scheme? Or could we start the process to buy it as soon as we move in?

Thanks

Josh

daveyjp

Whilst you rightly want to avoid leasehold, the lease will contain obligations which may pass through to the freehold and be enforced by covenant and restriction on title, so you need this detail.  If the estate is large try and find a freehold property and download the title info.

user1977

RedBerry_95 said:

We are looking at buying an 8 year old Persimmon built home. Current owner has owned from Brand New. The house is currently leasehold. I'd like to avoid leasehold if possible.

Why? What does the lease say? How much difference will it make to own the freehold (and probably still have most of the covenants applying to you)?

eddddy

RedBerry_95 said:

2. We buy the property as leasehold, include in price negotiations and then buy the freehold ourselves. - However, I know the government right to buy scheme is a minimum of 2 years ownership. Does anyone know if this is the same with Persimmons scheme? Or could we start the process to buy it as soon as we move in?

The background is that Persimmons have given a voluntary undertaking to the Competitions and Markets Authority to sell freeholds for £2k (or less if you can get a valuation showing that the freehold is worth less than £2k).


The undertaking doesn't say anything about leaseholders having to wait 2 years, and there is no legal reason why you should have to wait 2 years.  So I'd guess you don't have to wait.

I imagine that the undertaking is pretty much 'cast-iron' - so I doubt that Persimmons can't change their minds about the scheme later.


But if you want to be 100% certain, you could exchange contracts to buy both the leasehold house and the freehold on the same day. But Persimmons would need to cooperate, and the extra work might slow down your house purchase.


Here's the undertaking by Persimmons:  https://assets.publishing.service.gov.uk/media/60d206af8fa8f57cf29cdb18/Persimmon_Undertakings.pdf




But hopefully you realise that buying the freehold probably won't make a difference to service charges.

Except that there is currently less protection for freeholders compared to leaseholders, if you want to challenge service charges. Which is a downside to owning the freehold.

chanz4

still have to pay a few hundred a year ground fee even if do own.

Suzycoll

eddddy said:

RedBerry_95 said:

2. We buy the property as leasehold, include in price negotiations and then buy the freehold ourselves. - However, I know the government right to buy scheme is a minimum of 2 years ownership. Does anyone know if this is the same with Persimmons scheme? Or could we start the process to buy it as soon as we move in?

The background is that Persimmons have given a voluntary undertaking to the Competitions and Markets Authority to sell freeholds for £2k (or less if you can get a valuation showing that the freehold is worth less than £2k).


The undertaking doesn't say anything about leaseholders having to wait 2 years, and there is no legal reason why you should have to wait 2 years.  So I'd guess you don't have to wait.

I imagine that the undertaking is pretty much 'cast-iron' - so I doubt that Persimmons can't change their minds about the scheme later.


But if you want to be 100% certain, you could exchange contracts to buy both the leasehold house and the freehold on the same day. But Persimmons would need to cooperate, and the extra work might slow down your house purchase.


Here's the undertaking by Persimmons:  https://assets.publishing.service.gov.uk/media/60d206af8fa8f57cf29cdb18/Persimmon_Undertakings.pdf




But hopefully you realise that buying the freehold probably won't make a difference to service charges.

Except that there is currently less protection for freeholders compared to leaseholders, if you want to challenge service charges. Which is a downside to owning the freehold.

sorry i cannot advise and for jumping on the post . My question is to edddy. The document you posted re Persimmon leasehold - where did you find this please ? The reason I am asking is I am considering buying a Persimmon flat and I would eventually like to buy the lease. May I ask where you found this information and what is it part of ?
thanks in advance 

eddddy

Suzycoll said:

sorry i cannot advise and for jumping on the post . My question is to edddy. The document you posted re Persimmon leasehold - where did you find this please ? The reason I am asking is I am considering buying a Persimmon flat and I would eventually like to buy the lease. May I ask where you found this information and what is it part of ?

thanks in advance 

I just replied to your other thread. I think you're a bit confused.

You would be buying a leasehold flat (i.e. you will own the lease.)

Sometimes leaseholders 'club together' to jointly buy the freehold of the building. Estate Agents then call that "Share of Freehold".


The document I linked to relates to houses. It doesn't discuss jointly buying the freehold of a block of flats building.

Suzycoll

eddddy said:

Suzycoll said:

sorry i cannot advise and for jumping on the post . My question is to edddy. The document you posted re Persimmon leasehold - where did you find this please ? The reason I am asking is I am considering buying a Persimmon flat and I would eventually like to buy the lease. May I ask where you found this information and what is it part of ?

thanks in advance 

I just replied to your other thread. I think you're a bit confused.

You would be buying a leasehold flat (i.e. you will own the lease.)

Sometimes leaseholders 'club together' to jointly buy the freehold of the building. Estate Agents then call that "Share of Freehold".


The document I linked to relates to houses. It doesn't discuss jointly buying the freehold of a block of flats building.

Thank you 
I have replied to your previous comment. Yes it is a leasehold flat .... Schoolboy error  !