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Buy Your Freehold - guide discussion

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  • drivememad
    drivememad Posts: 12 Forumite
    First Anniversary
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    tim123456789 wrote: »
    werll the choice is:

    1) Pay 5K now and zero ground rent forever

    or

    2) pay 338 ground rent for the next n years and then pay 7K plus perhaps 3k to buy the lease in the future.

    do you think that a prospective buyer will thank you for choosing option 2?

    (and do you think that it will make your property worth less)

    OK, that makes it clearer, so basically if I take option 2 the cost to purchase at a later date will go up, I hadn't realised. Bit of a nightmare really as I owe as muh as the house is up for sale for. Thanks for your reply Tim
  • The_Bobbler
    The_Bobbler Posts: 2 Newbie
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    Hello,
    we are in the process of completing the freehold purchase of our block of 6 maisonettes.
    We thought it would be cheaper to insure the block after we had the freehold but it's gone up.
    We need some more quotes, can anyone recommend an agent that deals with this type of insurance ?
    cheers
  • GT21
    GT21 Posts: 1 Newbie
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    I own one of two flats in a converted semi detached house. Both are leasehold. I am the sole owner of mine and my downstairs neighbour has shared ownership with a Housing Association, he owns 60%, HA owns 40%.

    Both our leases have just under 70 years remaining. The freeholder is a property company.

    He has been told he cannot apply to buy the freehold with me as he is a sub leaseholder - the Housing Association are Head Leaseholder and are not interested in the freehold. But they are insisting he extends his lease before it gets shorter and more expensive

    I have read that where a property is two flats, both leaseholders must apply to buy the freehold and it implies I can't buy it on my own.

    Is this true or can I buy the freehold on my own? What other advice can anyone give? Thank you.
  • SKPatel
    SKPatel Posts: 63 Forumite
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    It is usually the case in a block of two flats that both must participate in order to acquire the freehold. However, as your neighbour has a shared ownership lease, it is likely that he does not meet the criteria required under the legislation to participate in acquiring the freehold. You cannot purchase the freehold on your own i'm afraid.

    Can your neighbour afford to purchase the other 40% of his shared ownership lease?
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
  • propertyman
    propertyman Posts: 2,922 Forumite
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    If you can agree terms with the FH, they offer the freehold to you and the HA, they decline and you agree to buy it with the sub lessee.

    After the formal offer is made and the right not exercised it is a simple commercial transaction between any willing parties.

    If the leases for the HA and you are short, the FH value will be considerable.
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";     if you can show me one I will produce my daughter's unicorn
  • nelpha
    nelpha Posts: 3 Newbie
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    Hiya,

    I live in a semi-detached house which is leasehold. I have to pay ground rent (just £6 a year with hundreds of years left) and that's it. But I would prefer to own it all outright with no leases involved at all and believe it would be more attractive when we sell it that way.

    The leaseholders and the freeholder are different companies. I have been told by the leaseholding company that I can buy the leasehold for £700. I've also been told by the separate freeholders that I can buy the freehold for around £700 too.

    I'm a bit confused as if I buy the freehold I'd expect to own the property and not have to pay a leasehold (who to - myself?). Does anyone know if I should buy both and, if I do, if I would be the outright, nice and simple freeholder?

    Also, I've been told by the freeholders that they will cover their legal costs, any final ground rent adjustments and will sort out the registry with the land registry all within that cost, which makes me think it would be simple and require no solicitor at my end. Am I being overly-optimistic there?

    Lots of questions I know. Can anyone help with any of them?

    Very grateful for any advice.

    Neil
  • af2909_2
    af2909_2 Posts: 196 Forumite
    First Post First Anniversary Combo Breaker
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    I'm about to see our sols about buying the freehold to our maisonnette (with the upstairs property) as our freeholder is missing and has been for many years. I've exhausted search methods via London Gazette, Local paper notices, electoral role searches and recorded delivery letters which have all been returned to me and will discuss how to apply to the courts for the vesting order to take to the LVT

    I have 2 questions though (which I think I know the answer too but will put them out there any way :D )

    1 - we have indeminty policies for structural, contingent and return of freeholder. Some of the render blew out during the winter - would we be able to claim via the policy or not (given that we will be looking to enfranchise soon)

    2 - as the freeholder has been missing for many years, is the lack of maintenance taken into account when conducting a valuation?

    Many thanks ladies and gents :beer:
  • propertyman
    propertyman Posts: 2,922 Forumite
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    1 No it's unlikely as you would organise repairs jointly in their abscence. Check your policy.

    2 Yes.


    In the abscence of a freeholder you can always

    A exercise the right to manage and take over all their responsbilities, which only costs your legal fees to apply to the Tribunal, and not a sum to compensate the freeholder should they return, and you only need to put ground rent to one side for 6 years.

    B have the tribunal appoint a receiver manager to take on control of the building.
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";     if you can show me one I will produce my daughter's unicorn
  • SKPatel
    SKPatel Posts: 63 Forumite
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    af2909 wrote: »
    I'm about to see our sols about buying the freehold to our maisonnette (with the upstairs property) as our freeholder is missing and has been for many years. I've exhausted search methods via London Gazette, Local paper notices, electoral role searches and recorded delivery letters which have all been returned to me and will discuss how to apply to the courts for the vesting order to take to the LVT

    I have 2 questions though (which I think I know the answer too but will put them out there any way :D )

    1 - we have indeminty policies for structural, contingent and return of freeholder. Some of the render blew out during the winter - would we be able to claim via the policy or not (given that we will be looking to enfranchise soon)

    2 - as the freeholder has been missing for many years, is the lack of maintenance taken into account when conducting a valuation?

    Many thanks ladies and gents :beer:

    Hello!

    With regard to the indemnity policies, you will need to check the policies to see what is covered. You may be able to claim under your buildings insurance policy however.

    As to the valuation of the freehold, you should speak with your surveyor about a valuation under legislation that allows you to acquire the freehold because the freeholder is not adhering to the covenants of the lease. This may save you a few thousand pounds particularly if your lease is under 80 years.

    Good Luck!
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
  • af2909_2
    af2909_2 Posts: 196 Forumite
    First Post First Anniversary Combo Breaker
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    SKPatel wrote: »
    Hello!

    With regard to the indemnity policies, you will need to check the policies to see what is covered. You may be able to claim under your buildings insurance policy however.

    As to the valuation of the freehold, you should speak with your surveyor about a valuation under legislation that allows you to acquire the freehold because the freeholder is not adhering to the covenants of the lease. This may save you a few thousand pounds particularly if your lease is under 80 years.

    Good Luck!

    Would that be the Landlord and Tennant Act 1987 ;);) :beer:
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