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Ground Rent Purchase
dreyfus
Posts: 1 Newbie
My house has a 999 year lease. Gound rent is only £25 p.a. but I would like to buy it and own the freehold. It has cost me over £500 so far.
Does anyone know if there is any legislation that entitles me to buy (i.e. whereby the landlord could not refuse to sell)?
And are there any guidlines on the amount I will need to pay.
Does anyone know if there is any legislation that entitles me to buy (i.e. whereby the landlord could not refuse to sell)?
And are there any guidlines on the amount I will need to pay.
0
Comments
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As a leaseholder I don't believe you have the right to buy the freehold from the landlord if he doesn't want to sell. Leaseholders who have owned their property for at least 2 yrs do have the right to extend their lease.
A 999 yr lease & paying almost a peppercorn rent of £25 per year is as good as a freehold in my eyes & prospective buyers would view it this way too. Buying the freehold in your case wouldn't add any value to the property.
However, with such a long lease & a very low ground rent, it may well be that your landlord will be more than happy to sell if you approach him, for this freehold certainly doesn't seem be of much use investment wise.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
...............................I have put my clock back....... Kcolc ym0
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The link to Shelter was very informative. I have just received a letter from the freeholder offering to sell the freehold. I have no idea if the price is reasonable. Does anyone know of a formula that I can use to come up with a fair figure?0
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£25 per year for ever is worth about £500 so you might be willing to pay somewhat more than £500 to own the freehold yourself.
My first guess would be that an amount in the region of £1000 with you paying the legal fees of yourself and the current leaseholder would be reasonable to both sides.
[Not financial advice ... Just an amateur waffling on
] ...............................I have put my clock back....... Kcolc ym0 -
But if it's a fixed cost of £25 pa, why would you want to pay more than £500?
It really isn't worth anything more than this to remove this £25 obligation.
Paying double the price due to legal fees etc. is just OTT IMHO.
I doubt that the owner paid £500 for the freehold, as whenever they bought it their vendor needed to make allowance for collection costs, arrears, etc. So they might sell out for less than the first-suggested £500.0 -
Perhaps Dreyfus will tell us in due course what the leaseholder actually ask for the freehold................................I have put my clock back....... Kcolc ym0
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