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[Deleted User]
Posts: 0 Newbie
Hello all,
We have been offered to buy the leasehold for our house for £950 inc fees. It is a 999 year lease and has still got 949 year to go.
We are unsure if we such buy and what are the pros and cons??
Is the price reasonable ?
We have been offered to buy the leasehold for our house for £950 inc fees. It is a 999 year lease and has still got 949 year to go.
We are unsure if we such buy and what are the pros and cons??
Is the price reasonable ?
0
Comments
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Freeholds don't have time limits on them ?
Do you mean a lease extension ?
How long is your current lease?
£1 per year for 949 years looks a no brainer if it converts your property to "Freehold", but what does that mean to you in terms of extra responsibilities for maintenance and, if applic, estate costs etc?0 -
Freeholds don't have time limits on them ?
Do you mean a lease extension ?
How long is your current lease?
£1 per year for 949 years looks a no brainer if it converts your property to "Freehold", but what does that mean to you in terms of extra responsibilities for maintenance and, if applic, estate costs etc?
Sorry yes I meant to say leasehold. We have been offered to buy it but unsure if we such. We have never payed any maintenance cost and only pay the ground rent of £6 a year. We are not planning the on selling the house or building on the land.0 -
I still think you have your terminology the wrong way round.
Is your house currently leasehold and you have been offered the feeehold?
For £1 this sounds like a no brainer and will certainly make the house more appealing down the line.0 -
Hello all,
We have been offered to buy the leasehold for our house for £950 inc fees. It is a 999 year lease and has still got 949 year to go.
We are unsure if we such buy and what are the pros and cons??
Is the price reasonable ?
Snap it up. I am just about to fork out nearly £10 grand (not including legal fees) for my son to buy a lease extension (not the freehold) for his flat.
I would not hesitate to take the offer you have been quoted.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
It's an interesting question. As you've identified, it'll save you next to nothing right now. The two reasons it could be worthwhile are:
- it'll increase the value, or at least the saleability, of your home, when time comes to sell
- the lease may have onerous requirements, like requiring the freeholder's permission to make certain changes, which it may benefit you to be rid of.0 -
I still think you have your terminology the wrong way round.
Is your house currently leasehold and you have been offered the feeehold?
For £1 this sounds like a no brainer and will certainly make the house more appealing down the line.
Sorry, I don’t know where I got £1 from, but even for £950 it sounds good.
If the freeholder is looking to sell and you say no they could sell it to someone else who may, depending on the terms of the lease, make things more awkward/expensive for you.0 -
It depends on the specific details of the lease, but buying the freehold is generally considered a good thing. Whilst you don't pay anything but ground rent at the moment, that might change should the freeholder decide to sell up and a specialist management company takes over.
The devil is in the detail of the lease: Who is responsible if the tiles fall off the roof? What about if you wanted to extend (or, perhaps, a prospective purchaser wanted to extend)? Planning constraints aside, this all becomes your choice (or problem) if you have the freehold.
My parents bought the 999 year lease on their house after the freeholders changed solicitors and the new solicitor wrote to them saying they needed to set up a bank transfer (they used to send off a cheque for £3.50 every 6 months) or they could buy it outright - they chose to buy simply to avoid the hassle of setting up the new payments (they don't use on-line banking).
SPCome on people, it's not difficult: lose means to be unable to find, loose means not being fixed in place. So if you have a hole in your pocket you might lose your loose change.0 -
Before you decide you need to read your lease, if you don't have a copy your mortgage holder or solicitor should have a copy or as a last resort the land registry. This will tell you what you have to do ie pay rent, ask freeholder for permission to make material alterations (he will charge for this) not do certain things ie run a business from the house. And wht the freeholder has to do, usually very little. It is important to know when and by how much the ground rent increases, it's all about the freeholder getting more money out of you. He may insist and you have to comply that you insure through his office, thus giving him the commission.
My leasehold has 942 years left at £16 pa, the GR starts to increase in the last 50 years and we don't get much trouble from the agents since they tried to pull a stroke many years ago but there were more than a couple of legal people and our local MP all lived on the estate and they were put in their place.
They are offering the freehold for £800, last year it was £1,000, If I pay they can invest the money at 2% to yield £16 and enjoy super profits when interest rates rise. So since neither I nor the person I sell to will be affected by the end of leasehold I am content to stick and watch the price drop0 -
If its a 100k house and owning the freehold increases the value by 1% its cost you nothing.
Can you haggle over the price?0 -
I'm curious how come this topic has been bumped from over 18 months of obscurity.Proud member of the wokerati, though I don't eat tofu.Home is where my books are.Solar PV 5.2kWp system, SE facing, >1% shading, installed March 2019.Mortgage free July 20230
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