Implications of buying a leasehold house

Stevie1

Had an offer accepted on a house that is leasehold (900 odd years left on it apparently). It is essential we can extend the house, that was one of the reasons we liked it (the potential).

Having read a bit on this forum and the internet, I understand some freeholders can be funny about things like that and that permission (and poss. payoff!?!?) is required.

Is it too early to ask our solicitor to find out all the ins and outs of the leasehold? Any other important things to be aware of?

eldowardo

never too early to ask anything with your solicitor, better off finding out early on in the process rather than later on where you will havespent time and money into things

viktory

Since I started working in a leasehold department I would never, ever buy leasehold. I am currently sending out bills to the tune of £20k - each. If you are determined to go ahead ask your solicitor to check for any service charges and major works charges that are outstanding and if there are any major works in the pipeline.

Kavanne

I am also in the process of checking this with my solicitor. In our docs for the flat we're buying is a letter giving 'restrospective' permission for the leaseholder to install new double glazing (ie: the leaseholder did it then got permission) and in my lease it says we need permission for any alterations :-o So I've asked my solicitor if this includes new carpets, new curtain poles, picture hooks.. all those silly little things because it would be a LOT of effort to get permission for all those things!

viktory, what do you mean by major work charges? We want to knock down a wall at some point, how much do you think the freeholder will want to charge us?!

Stevie1

As I said, this is a house not a flat, so issues regarding service charges and/or maintenance company costs do not apply here.

Feedup_Hosue_Seller

We had a leasehold house for many years (18years) until recently - we had no problems whats so ever doing an extension and making structural changes - simply wrote to the leaseholder named in the lease (as this was a requirement within the lease documentation) - we had no charges, even after the freeholder had died. We had no problems apart from a minor issue when the landlord went into a home and no one collected the ground rent for a year (we needed a reciept when we were selling) but that was resolved. We considered buying the freehold, but with a very low ground rent and a lease of 999 (minus 50 years) everyone told us that it was not worth the approx £6,500 cost (including the freeholders legal costs). Don't forget you will also have the right to purchase the freehold after two years (which can be less if the freeholder agrees).

EdInvestor

Generally these very long leasehold houses are not a problem, but there have been recent cases of some rather spivvy companies buying them up and then attempting to charge leaseholders for various activities. So a close inspection of the lease conditions would be wise to check there is no scope for this kind of thing - and it may be worth checking the cost of buying the freehold, which is often quite low - a few hundred pounds.

clutton_2

i have several leasehold houses - and a few are owned by the same company. When i first bought one of theirs they wrote asking me for £117.50 as i had not paid the ground rent of £0.15s.6d (about 75p).

I knew that they are not allowed to charge any more than is in the original lease - and can only claim 6 years worth of late ground rent - so i wrote quoting the relevant Act and now they invoice me yearly for £0.75p !!!

But the letters they send look like court documents - and they are not, so if you get one, dont pay it !!!

Richard_Webster

Sometimes the freeholds belong to little old ladies who are the granddaughters etc of the original builder and they often forget to collect the ground rent. If you can contact them you may not have too much difficulty getting a consent for alterations from them if this is required by the terms of the lease.

However I do agree with this comment which puts it very well:

Generally these very long leasehold houses are not a problem, but there have been recent cases of some rather spivvy companies buying them up and then attempting to charge leaseholders for various activities. So a close inspection of the lease conditions would be wise to check there is no scope for this kind of thing - and it may be worth checking the cost of buying the freehold, which is often quite low - a few hundred pounds.

Stevie1

Thanks Richard and everyone else:beer:

nelly_2

All this leasold freehold lark really gets on my tits

Its like they said Oi the peasants actually want to own their own house?

Really well lets make it so we still own the land ! we cant have peasants actually having things

It might actually only be a few quid a year but its absolutely dissgusting and rooten to the core.

It sums up this country to a tee

WE WILL TAKE MONEY OFF YOU ANY WAY WE CAN!