Leasehold Nightmares

JHodkin20

I bought a 50% shared ownership 3 bed end terrace in 2020 and last week I completed on staircasing to 100% ownership.

Before I started the process to staircase, I asked the housing association that owned the other 50% if I would acquire the freehold upon staircasing to 100% and they said yes.

Fast forward to today when I get an email from my solicitor asking me to sign to say that I will be taking over the payment for the ground rent. I sent an email straight back asking what they were talking about and they said that the freeholder is Persimmon Homes (original house builder) and that the housing association had no right to say that I would gain the freehold as they never had it in the first place!

I'm now in a position where I have 89 years left on the leasehold and will have to fork out £4K+ to get the freehold. I'm concerned that if I leave it too late it will be more difficult to do, and lease extensions seem to be even more costly. I want to sell the property soon also so I'm conscious that some banks won't lend with a shirt lease term remaining.

Has anyone been through the process before because it just seems utterly crazy that leasehold is even a thing?

Woodstok2000

Did the housing association definitely say you would acquire it, or you could acquire it? Given you were having that discussion in 2020, it seems the craziness of the leasehold scenario has been on your mind for some time. You may just be best sucking up the £4k here to smooth over the sale in the near future.

JHodkin20

https://forums.moneysavingexpert.com/discussion/comment/82098517#Comment_82098517

They did say I would acquire the freehold in a conversation I had with them over email in December 2025. They have apologised for 'misinforming' me but followed it up by saying they aren't solicitors and basically blamed my solicitor for not picking it up. I think you're right and I will have to buy the freehold. I've already submitted an enquiry to Persimmon Homes, it's just a pain that I've literally just paid a load of conveyancing fees to staircase and now I'll be forking out again 🙁

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82098538#Comment_82098538

Wow, that's quite a 'misinformation'. Good luck!

itsthelittlethings

I'm really surprised this didn't come up with the solicitor.

JHodkin20

https://forums.moneysavingexpert.com/discussion/comment/82098569#Comment_82098569

Same. Every bit of communication with the solicitor has been over email and the process has taken 7 months to complete. At no point have I seen any document that mentions the property still being leasehold. In fact, going through my emails, there aren't many documents at all aside from ones I've had to print, sign and send back!

itsthelittlethings

https://forums.moneysavingexpert.com/discussion/comment/82098582#Comment_82098582

Didn't you have to sign a new lease?

JHodkin20

https://forums.moneysavingexpert.com/discussion/comment/82098586#Comment_82098586

Nope! The only reason it's come up now is because the solicitor sent me a 'deed of covenance' for me to sign to say that I would be taking over the payments for the ground rent and the service charges. I'm considering going to the legal ombudsman...

JHodkin20

Also can someone correct me if I'm wrong but if you let a lease run out, do you really get chucked out of your own home even though you have a mortgage on it?? Obviously it wouldn't happen on my 89 years, I'll be long dead but it just seems like such an awful concept!

itsthelittlethings

https://forums.moneysavingexpert.com/discussion/comment/82098624#Comment_82098624

Yes. You don't own your home any more. Nobody would give you a mortgage anyway.

TroubledTarts

https://forums.moneysavingexpert.com/discussion/comment/82098624#Comment_82098624

Yes ownership converts to the freeholder at the end of the lease and it is their property

Corrected x