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  • FIRST POST
    • MrBo
    • By MrBo 13th May 18, 11:59 AM
    • 21Posts
    • 1Thanks
    MrBo
    Freehold with 949 years
    • #1
    • 13th May 18, 11:59 AM
    Freehold with 949 years 13th May 18 at 11:59 AM
    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 ?
    Last edited by MrBo; 13-05-2018 at 12:27 PM.
Page 1
    • 00ec25
    • By 00ec25 13th May 18, 12:14 PM
    • 6,970 Posts
    • 6,650 Thanks
    00ec25
    • #2
    • 13th May 18, 12:14 PM
    • #2
    • 13th May 18, 12:14 PM
    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?
    • MrBo
    • By MrBo 13th May 18, 12:32 PM
    • 21 Posts
    • 1 Thanks
    MrBo
    • #3
    • 13th May 18, 12:32 PM
    • #3
    • 13th May 18, 12:32 PM
    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?
    Originally posted by 00ec25
    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.
    Last edited by MrBo; 13-05-2018 at 12:37 PM.
    • da_rule
    • By da_rule 13th May 18, 12:40 PM
    • 2,751 Posts
    • 2,423 Thanks
    da_rule
    • #4
    • 13th May 18, 12:40 PM
    • #4
    • 13th May 18, 12:40 PM
    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.
    • seven-day-weekend
    • By seven-day-weekend 13th May 18, 12:52 PM
    • 31,145 Posts
    • 59,574 Thanks
    seven-day-weekend
    • #5
    • 13th May 18, 12:52 PM
    • #5
    • 13th May 18, 12:52 PM
    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 ?
    Originally posted by MrBo
    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.
    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 Eagleton
    • ThePants999
    • By ThePants999 13th May 18, 12:57 PM
    • 1,259 Posts
    • 1,586 Thanks
    ThePants999
    • #6
    • 13th May 18, 12:57 PM
    • #6
    • 13th May 18, 12:57 PM
    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.
    • da_rule
    • By da_rule 13th May 18, 1:08 PM
    • 2,751 Posts
    • 2,423 Thanks
    da_rule
    • #7
    • 13th May 18, 1:08 PM
    • #7
    • 13th May 18, 1:08 PM
    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.
    Originally posted by da_rule
    Sorry, I donít 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.
    • StumpyPumpy
    • By StumpyPumpy 13th May 18, 1:51 PM
    • 1,292 Posts
    • 3,519 Thanks
    StumpyPumpy
    • #8
    • 13th May 18, 1:51 PM
    • #8
    • 13th May 18, 1:51 PM
    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).

    SP
    Come 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.
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