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    • Monty1978
    • By Monty1978 7th Jan 18, 9:03 PM
    • 8Posts
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    Monty1978
    Purchasing the freehold
    • #1
    • 7th Jan 18, 9:03 PM
    Purchasing the freehold 7th Jan 18 at 9:03 PM
    So my father and I are going to try and buy the other half of his property off Radian housing society.

    However, when he part purchased the property he was not mentally well and had just come out of the psychiatric hospital. He purchased a leasehold property not really knowing all the in's and outs'

    So my questions are..

    1- There is still 80 years left on the lease. If we bought it outright, leasehold, after 80 years can the owner be evicted?
    2- When the lease is ended, is it a full gone conclusion that the lease will be extended?
    3- Is it such a bad thing to buy a leasehold property?
    4- If the housing society decided to be a pain could they be sued for selling a product to a person that was not of sound mind?

    Thanks
Page 1
    • Cakeguts
    • By Cakeguts 7th Jan 18, 9:14 PM
    • 4,423 Posts
    • 6,354 Thanks
    Cakeguts
    • #2
    • 7th Jan 18, 9:14 PM
    • #2
    • 7th Jan 18, 9:14 PM
    How old is your father? How old will he be in 80 years time? What is the point of buying the other half?
    • Monty1978
    • By Monty1978 7th Jan 18, 9:18 PM
    • 8 Posts
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    Monty1978
    • #3
    • 7th Jan 18, 9:18 PM
    • #3
    • 7th Jan 18, 9:18 PM
    Unless he's damn lucky he'll be dead in 80 years time, he's 63.

    We want to buy the other half because we intend to convert the attic into a 3rd floor and live there rather than throw money away in rent. We don't want and can't do any home improvements unless it's fully owned as it may be prohibited but even if it's not why would i want to increase the value of the housing company's share?
    • HampshireH
    • By HampshireH 7th Jan 18, 9:24 PM
    • 700 Posts
    • 745 Thanks
    HampshireH
    • #4
    • 7th Jan 18, 9:24 PM
    • #4
    • 7th Jan 18, 9:24 PM
    Can you clarify...

    Is your father a shared owner or a leaseholder?

    Are your trying to staircase on shared ownership or buy the freehold to go with the leasehold?

    If your father was unwell then his solicitor should have stopped any purchased due to capacity issues. Were you involved at all at the time? How would Radian have known he had no capacity?
    • davidmcn
    • By davidmcn 7th Jan 18, 9:29 PM
    • 7,837 Posts
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    davidmcn
    • #5
    • 7th Jan 18, 9:29 PM
    • #5
    • 7th Jan 18, 9:29 PM
    4- If the housing society decided to be a pain could they be sued for selling a product to a person that was not of sound mind?
    Originally posted by Monty1978
    Sued for what? I presume it was sold at the then market price, that your dad had his own solicitor, he got a mortgage from someone (according to your other post), and nobody else at the time thought he wasn't compos mentis enough to go through with the transaction?

    As you'll see from plenty of the threads here, many people don't exactly "know all the in's and out's" of leasehold (or any) property laws, and merely being "mentally unwell" doesn't necessarily mean that you're not in a fit state to buy a house.
    • Monty1978
    • By Monty1978 7th Jan 18, 9:34 PM
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    Monty1978
    • #6
    • 7th Jan 18, 9:34 PM
    • #6
    • 7th Jan 18, 9:34 PM
    He's a shared owner.

    I don't really know what staircase on shared ownership means. He's owned half of the property for 25 years now if that is at all relevant.

    Why would a solicitor stop a mentally unwell person from getting a purchase of a property that he can afford. I doubt it's a solicitors responsibility to give financial advice. At the time he was not well and it was a case of use his savings to buy what he could under the circumstances or spend them until they are gone and go on welfare.

    I'm not necessarily saying he got a bad deal. He paid 65k for half the house 25 years ago and the whole property is valued at 250k now. I just want to understand if it's worth investing in, for the market price, bearing in mind it's leasehold.
    • davidmcn
    • By davidmcn 7th Jan 18, 9:52 PM
    • 7,837 Posts
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    davidmcn
    • #7
    • 7th Jan 18, 9:52 PM
    • #7
    • 7th Jan 18, 9:52 PM
    I don't really know what staircase on shared ownership means.
    Originally posted by Monty1978
    Exercising his right to buy additional share(s) in the property.

    Why would a solicitor stop a mentally unwell person from getting a purchase of a property that he can afford.
    Solicitors have a general duty to act in the best interests of their clients, particularly where they appear to be vulnerable. Read all about it here:
    http://www.sra.org.uk/risk/resources/vulnerable-people.page

    I doubt it's a solicitors responsibility to give financial advice.
    No, but the question of whether it was a good financial decision is a different one from whether he had sufficient mental capacity to go through with the transaction. People of perfectly sound mind often make bad financial decisions. The housing society certainly wasn't required to (and couldn't) give him financial advice.
    • Monty1978
    • By Monty1978 7th Jan 18, 10:02 PM
    • 8 Posts
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    Monty1978
    • #8
    • 7th Jan 18, 10:02 PM
    • #8
    • 7th Jan 18, 10:02 PM
    Thanks!

    I'm really just not seeing why a property that is not a flat or apartment block would ever be sold with a lease unless of course it's to rip off an unwary buyer. There seems to be to be no sense in purchasing a leasehold house that I can see unless for considerably less than it's equivalents market value.

    Are freeholds on houses usually difficult to purchase or expensive? Or is it entirely variable?

    Ta
    • Tiglet2
    • By Tiglet2 7th Jan 18, 10:22 PM
    • 162 Posts
    • 174 Thanks
    Tiglet2
    • #9
    • 7th Jan 18, 10:22 PM
    • #9
    • 7th Jan 18, 10:22 PM
    Can you clarify:
    Is the property a house split into two apartments (ground floor and first floor)? If so, is there another leaseholder?)
    Is the property a house in which your father is the only occupant and it is the land on which the house stands that is leasehold?
    Is the property a purpose built apartment block, where there are several owners (leaseholders) with a share in the management company (i.e. share of freehold)
    As a leaseholder, your father has the right to extend the lease (he has been a leaseholder for over two years). Not advisable to let the lease go under 80 years as the value of the property will go down and is more difficult to sell as mortgage providers may not lend on short lease terms.
    Buying the freehold may not be too expensive, but is the management company willing to sell?
    • Monty1978
    • By Monty1978 7th Jan 18, 10:27 PM
    • 8 Posts
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    Monty1978
    Wow,

    The lease goes under 80 years in precisely 1 month....

    The property is a mid terrace 2 story house and he has owned half of it for 19 years 11 months and pays rent and maintenance on teh other half for the same period.

    I'm gathering that now is the time to purchase with the freehold, if they sell, or at the very least extend the lease.

    No idea of the potential costs of either yet but I'm doing my research.

    thanks all for your input btw
    • Tom99
    • By Tom99 8th Jan 18, 8:38 AM
    • 2,244 Posts
    • 1,522 Thanks
    Tom99
    I am not sure but it might be only flats where the cut off point for including marriage is 80 years.
    Buying the freehold or a lease extension of a house is under a different Act to flats so the rules are different.
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