Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Irish girl
    • By Irish girl 12th May 18, 6:26 AM
    • 2Posts
    • 0Thanks
    Irish girl
    Freehold Contracts
    • #1
    • 12th May 18, 6:26 AM
    Freehold Contracts 12th May 18 at 6:26 AM
    Really hope someone can give me advice on this matter. I purchased a house with Persimmon that was leasehold and always had the intention to buy my freehold after two years.
    However due to the fact my build ran five months behind schedule I was offered the freehold because my mortgage lender was no longer happy to give me a mortgage.
    I have just received the contract and itís shocking, itís a TP1 and in the contract they talk about maintenance company, rentcharger, fee Iíve to pay persimmon for planning persimmon that never comes to an end. They have the right to enter my property etc.
    Has anyone dealt with persimmon regarding a freehold contract, do I need to sign it on their terms or can I negotiate? They have me over a barrel as Iíve just been informed that Iím due to collect keys end of this month.
Page 1
    • daveyjp
    • By daveyjp 12th May 18, 7:48 AM
    • 7,483 Posts
    • 5,966 Thanks
    daveyjp
    • #2
    • 12th May 18, 7:48 AM
    • #2
    • 12th May 18, 7:48 AM
    If you haven't exchanged you are still negotiating the terms of the sale.

    I wouldn't want a freehold which simply transfers leasehold obligations in to covenants and restrictions on the title.
    • Irish girl
    • By Irish girl 12th May 18, 7:56 AM
    • 2 Posts
    • 0 Thanks
    Irish girl
    • #3
    • 12th May 18, 7:56 AM
    • #3
    • 12th May 18, 7:56 AM
    I exchanged in August last year but that was for a leasehold property but now itís been transferred to freehold due to problems.
    • da_rule
    • By da_rule 12th May 18, 8:22 AM
    • 2,636 Posts
    • 2,323 Thanks
    da_rule
    • #4
    • 12th May 18, 8:22 AM
    • #4
    • 12th May 18, 8:22 AM
    If you!!!8217;ve got a TP1, this isn!!!8217;t the contract it!!!8217;s the transfer deed.

    You can always ask about the clauses, but it!!!8217;s unlikely that they will agree to any major alterations.

    The especially won!!!8217;t remove the estate charge, as they (or the management company they set up) will need to be able to recover the cost of maintaining all of the open spaces etc around the estate.

    The right to enter is pretty standard, it allows them to do any works to neighbouring properties (or your property) such as snagging. In reality once they are off site it is unlikely that they will use this.

    Having to pay them for consent for planning permission seems a bit over the top.
    • Tiglet2
    • By Tiglet2 12th May 18, 9:14 AM
    • 117 Posts
    • 89 Thanks
    Tiglet2
    • #5
    • 12th May 18, 9:14 AM
    • #5
    • 12th May 18, 9:14 AM
    A TP1 on a new build is the Contract. It's the transfer from developer to first owner. When the first owner sells in the future, it will a standard Contract, plus a copy of the Transfer (noted on the Title). It's done like this because a new build estate won't have their own title numbers until the TP1 is submitted to Land Registry, The estate is built out of another title, therefore a transfer of part. Unfortunately the developer will be unlikely to agree to any alterations to the contract. This same contract will apply to all the other new builds on the estate.

    I would think that the estate this property is situated will be subject to a maintenance contract for all the communal areas, i.e. cutting grass, road and pavement maintenance, trimming bushes and lighting etc. This would be ongoing. You won't have much say in what company the builder gives the maintenance contract to, in fact leaseholders will have more rights than a freeholder in this respect. Having said that, I do know friends of ours who live on a new estate where there are maintenance charges and the estate looks well looked after, unlike the cursory grass cutting we get from the Council! No idea what they pay for this service though, but believe that councils are not keen to adopt many new build estates, hence the popularity for maintenance contracts.
    • da_rule
    • By da_rule 12th May 18, 9:21 AM
    • 2,636 Posts
    • 2,323 Thanks
    da_rule
    • #6
    • 12th May 18, 9:21 AM
    • #6
    • 12th May 18, 9:21 AM
    Yes, i!!!8217;m aware that the TP1 is a transfer deed, therefore it is not the contract of sale.

    Having dealt with multiple new builds and other transfer of parts (and first leases) I have never come across anyone using a deed as a contract (or even suggesting that this is acceptable). The function of the two are completely different. The contract commits you to buying, and deals with deposit, chattels etc and the deed transfers the land (on completion) and crystallises the covenants. The contract will also incorporate all of the standard conditions of sale, which are not incorporated into a transfer deed.
    • eddddy
    • By eddddy 12th May 18, 12:54 PM
    • 6,349 Posts
    • 6,222 Thanks
    eddddy
    • #7
    • 12th May 18, 12:54 PM
    • #7
    • 12th May 18, 12:54 PM
    I have just received the contract and it!!!8217;s shocking, it!!!8217;s a TP1 and in the contract they talk about maintenance company, rentcharger, fee I!!!8217;ve to pay persimmon for planning persimmon that never comes to an end. They have the right to enter my property etc.
    Originally posted by Irish girl
    Are the freehold terms worse than the terms of the leasehold that you originally agreed to?

    I purchased a house with Persimmon that was leasehold and always had the intention to buy my freehold after two years.
    Originally posted by Irish girl
    The leasehold covenants may be carried forward to the freehold. So you might have ended up in the same position.

    However due to the fact my build ran five months behind schedule I was offered the freehold because my mortgage lender was no longer happy to give me a mortgage.
    Originally posted by Irish girl
    If the 'long-stop' date has passed, you should be able to back out of the purchase with no penalty.

    Or have you already signed a new contract that commits you to purchasing the freehold instead?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

167Posts Today

1,457Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin