Offer to buy Freehold

Lavlea

Hello, I’m new here sorry for jumping in. I too have been asked by my leasehold company if I want to buy the freehold, we only purchased the house last July and it’s our first home so unsure what to do. Backstory is the house was built in 1909 the lease was for 999 years and currently pay £3.25 a year, the company have said “We would be able to sell you the freehold for £585 inclusive of costs associated with the sale and Land Registry fees.” 

I’ve always been told that we should instruct a solicitor but we aren’t in a financial position to do this as yet, we have the £585 but no more as the house has literally cost us over £40k already due to dodgy workmen and burst pipes etc so still lots to do in the house and very limited funds, any advice would be really appreciated, thank you 

eddddy

Lavlea said:

Hello, I’m new here sorry for jumping in. I too have been asked by my leasehold company if I want to buy the freehold, we only purchased the house last July and it’s our first home so unsure what to do. Backstory is the house was built in 1909 the lease was for 999 years and currently pay £3.25 a year, the company have said “We would be able to sell you the freehold for £585 inclusive of costs associated with the sale and Land Registry fees.” 

I’ve always been told that we should instruct a solicitor but we aren’t in a financial position to do this as yet, we have the £585 but no more as the house has literally cost us over £40k already due to dodgy workmen and burst pipes etc so still lots to do in the house and very limited funds, any advice would be really appreciated, thank you 

Is there a particular reason why you want to buy the freehold?

The main reason to instruct a solicitor would be so they could check that your freeholder isn't tricking you - for example, by adding unnecessary covenants to the freehold, or adding dodgy terms to the contract.

The solicitor could also check for legal issues (like the presence of an intermediate lease).


Just as background info - according to the government's statutory formula, your freehold is worth about £50.

The leasehold reforms currently going through parliament, combined with the £50 value, might make it much cheaper to buy the freehold later (assuming the reforms go through.)