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  • FIRST POST
    • JadeLouise
    • By JadeLouise 6th Aug 18, 11:51 PM
    • 21Posts
    • 10Thanks
    JadeLouise
    Buying a house may (or may not) be the death of me
    • #1
    • 6th Aug 18, 11:51 PM
    Buying a house may (or may not) be the death of me 6th Aug 18 at 11:51 PM
    Hey !

    Myself and my partner have took the plunge into the deep end and have decided to buy our first house. We have been living with his parents and our son for the last 2 years since he was born and have just about saved for a deposit.

    Rightly so, the time has come where the space we are in is not adequate for us, our mental health, relationship or our son. So off I went about 2 weeks ago and found a broker who has arranged our AIP and we have viewed about 6 houses.

    No i cant get my head around what to do next. We like one particular house which we are viewing again this week, but its at the top end of pur budget and leasehold and ,despite leasehold properties being the majority around here( in the NW), this puts us off alot. The im worried about when to get a solicitor or the actual mortgage etc etc. I could literally lay awake all night worrying !

    All I have to go by is what i find on the internet, will be the death of me
Page 1
    • G_M
    • By G_M 7th Aug 18, 3:34 AM
    • 45,013 Posts
    • 53,643 Thanks
    G_M
    • #2
    • 7th Aug 18, 3:34 AM
    • #2
    • 7th Aug 18, 3:34 AM
    Free at your local library:


    https://www.amazon.co.uk/How-Your-First-Home-Sell/dp/0091935377?SubscriptionId=AKIAILSHYYTFIVPWUY6Q&!!! !!duckduckgo-ffsb-uk-21&linkCode=xm2&camp=2025&creative=165953&creative ASIN=0091935377
    • Smellyonion
    • By Smellyonion 7th Aug 18, 5:31 AM
    • 110 Posts
    • 61 Thanks
    Smellyonion
    • #3
    • 7th Aug 18, 5:31 AM
    • #3
    • 7th Aug 18, 5:31 AM
    Just make sure the ground rent is not exponential. You won't be able to sell in the future.
    • JadeLouise
    • By JadeLouise 7th Aug 18, 5:52 AM
    • 21 Posts
    • 10 Thanks
    JadeLouise
    • #4
    • 7th Aug 18, 5:52 AM
    • #4
    • 7th Aug 18, 5:52 AM
    I did ask when viewing. The lady seems to thi k ot was 3.50 per annum amd the lease has 900 and something years left. I have been reading online that you can buy the freehold but i suspect just like with all things related to house buyibg, this wouldn't be easy.
    • AlexMac
    • By AlexMac 7th Aug 18, 6:35 AM
    • 2,106 Posts
    • 1,837 Thanks
    AlexMac
    • #5
    • 7th Aug 18, 6:35 AM
    • #5
    • 7th Aug 18, 6:35 AM
    Pushing your budget now is no bad thing if you have reasonably secure income and don't mind scrimping; I always think it's best to buy as far up the scale as you can manage.

    Nothing essentially wrong with buying leasehold (and in the last 20-odd years I've owned five such) but it's important to know what you're getting.

    It's not enough if
    ... The lady seems to think it was 3.50 per annum amd the lease has 900 and something years left.....
    Originally posted by JadeLouise
    You won't get definitive answers til your solicitor gets them in writing, by which time you may feel committed, having had an offer accepted and paid for conveyancers' enquiries, etc but I wouldn't even offer on a flat without some idea of
    - length of lease,
    - who the freeholder is and who manages (and decides on) things like maintenance of the block (if flats) or common areas, and crucially,
    - what the ground rent is and whether it doubles every so many years (the Government promises to end this scandal by new developers, but...)
    - how much the annual service-charges are and whether this includes any "sinking fund" for major repairs or external decoration. I've owned flats where this si as little as 420 p.a. but mates paid 5,000 each year!

    So ask and don't be fobbed off by " a Lady who thinks that..."

    More detail in my post #13 at
    https://forums.moneysavingexpert.com/showthread.php?p=74568728#post74568728
    • tizerbelle
    • By tizerbelle 7th Aug 18, 6:43 AM
    • 1,496 Posts
    • 3,237 Thanks
    tizerbelle
    • #6
    • 7th Aug 18, 6:43 AM
    • #6
    • 7th Aug 18, 6:43 AM
    Leasehold in the NW, about 3.50 a year.... you're looking at a Victorian terrace? Long leases such as those on Victorian terraces are generally nothing to worry about. They are so common in the NW that they have very little to no impact on house prices, the lease has no scope for increasing the ground rent and you rarely if ever need to ask permission from the freeholder for anything and even if you do there is nothing in the lease to permit them to charge you for it. Even if you stay in the house till you are 100, there will still be over 800 years left on the lease when you come to sell so short lease length causing issues for potential buyers to get a mortgage is not something you need to worry about.

    Just ask to see a copy of the full lease and read it to understand the conditions. Your solicitor will need to do this anyway before you exchange should you proceed. The Land Registry Title will give the key details of the lease: date it started, length and ground rent amount but they tend not to have the full lease digitised.

    My lease? Has 866 years left and ground rent is 1.14 and even though I will live here till I'm taken out in a coffin I wont be buying the freehold - there's no need.

    Oh - and there's no such thing as a service charge / maintenance charge or anything else in my lease. And likely not in the one you are looking at either. The ground rent is the only cost.
    Last edited by tizerbelle; 07-08-2018 at 6:49 AM.
    • tizerbelle
    • By tizerbelle 7th Aug 18, 6:55 AM
    • 1,496 Posts
    • 3,237 Thanks
    tizerbelle
    • #7
    • 7th Aug 18, 6:55 AM
    • #7
    • 7th Aug 18, 6:55 AM
    but I wouldn't even offer on a flat
    Originally posted by AlexMac
    If you re-read the OP you'll see this isn't a flat, it is a house, it is in the North West and has 800/900 years left on the lease - 3 key pointers that this is an old style lease and it is nothing out of the ordinary and certainly not a reason to be overly worried.
    • JadeLouise
    • By JadeLouise 7th Aug 18, 6:58 AM
    • 21 Posts
    • 10 Thanks
    JadeLouise
    • #8
    • 7th Aug 18, 6:58 AM
    • #8
    • 7th Aug 18, 6:58 AM
    Thanks guys, it was the vendor who showed me around, she was saying she never worried about it too much which is why she "thinks".

    Yes its a victorian terrace (type of house I dream about), the monthly repayments will be affordable to us, but we had to set a budget because we dont have a high deposit We expected to survive with the in-laws a lot longer but its simply not possible anymore so its either buy a house now or rent (which i am not opposed to but everyone else seems to be haha)

    This gives me a little more hope!
    • Lauralou79
    • By Lauralou79 7th Aug 18, 6:59 AM
    • 233 Posts
    • 239 Thanks
    Lauralou79
    • #9
    • 7th Aug 18, 6:59 AM
    • #9
    • 7th Aug 18, 6:59 AM
    Buying a house is straight forward enough, I was a FTB last year and all I can advise is read up on everything you can. This forum was brilliant. If you know what's coming next or what to expect it will be a little less stressful.

    However if you are finding viewing/ choosing stressful .....brace yourself. Ours was pretty straightforward but still the most stressful thing I have done as an adult. Totally worth it though. Just be prepared! Good luck.
    • moneyistooshorttomention
    • By moneyistooshorttomention 7th Aug 18, 7:21 AM
    • 16,409 Posts
    • 45,430 Thanks
    moneyistooshorttomention
    Leasehold in the NW, about 3.50 a year.... you're looking at a Victorian terrace? Long leases such as those on Victorian terraces are generally nothing to worry about. They are so common in the NW that they have very little to no impact on house prices, the lease has no scope for increasing the ground rent and you rarely if ever need to ask permission from the freeholder for anything and even if you do there is nothing in the lease to permit them to charge you for it. Even if you stay in the house till you are 100, there will still be over 800 years left on the lease when you come to sell so short lease length causing issues for potential buyers to get a mortgage is not something you need to worry about.

    Just ask to see a copy of the full lease and read it to understand the conditions. Your solicitor will need to do this anyway before you exchange should you proceed. The Land Registry Title will give the key details of the lease: date it started, length and ground rent amount but they tend not to have the full lease digitised.

    My lease? Has 866 years left and ground rent is 1.14 and even though I will live here till I'm taken out in a coffin I wont be buying the freehold - there's no need.

    Oh - and there's no such thing as a service charge / maintenance charge or anything else in my lease. And likely not in the one you are looking at either. The ground rent is the only cost.
    Originally posted by tizerbelle
    This

    - it's the view I'd take if I were in that area of the country and this was the type of lease meant. That being - I wouldnt bother myself about it. It seems to be the "modern" type leases (ie on houses built pretty recently - like our lifetimes) that are the problem from what I can make out.

    In any position - I'd take your chance whilst you have it. In your position - the situation of trying to cram an extra household into the same house is a very difficult one and an extra reason why you need your own home - now.

    Don't miss the boat - go ahead. There are (lots of) stresses involved in buying a house - but a few months down the line they'll be over and you'll be settled.
    Last edited by moneyistooshorttomention; 07-08-2018 at 7:23 AM.
    ****************
    • LandyAndy
    • By LandyAndy 7th Aug 18, 8:42 AM
    • 24,379 Posts
    • 51,501 Thanks
    LandyAndy
    My first house was also in the NW (Manchester) and also leasehold. It was the residue of a 999 year lease with a 4 pa ground rent.

    Back then it was difficult to find freehold properties in the area and everyone viewed long leases as the equivalent of freehold.

    Other than popping into their offices with a cheque for 2 every six months I had no contact with the freeholder in the five years I lived there.
    • Out, Vile Jelly
    • By Out, Vile Jelly 7th Aug 18, 10:21 AM
    • 4,076 Posts
    • 13,856 Thanks
    Out, Vile Jelly
    Why not knock on a couple of doors in the street and explain that you're a young family hoping to buy the one for sale, and just wondered how they view the lease- would also help you guage how friendly your potential neighbours are.
    They are an EYESORES!!!!
    • ThePants999
    • By ThePants999 7th Aug 18, 9:26 PM
    • 1,235 Posts
    • 1,541 Thanks
    ThePants999
    Just make sure the ground rent is not exponential. You won't be able to sell in the future.
    Originally posted by Smellyonion
    Inflation is exponential, why would ground rent not be?

    Make sure the ground rent increases aren't too big, sure. They'll usually be exponential, though.
    Last edited by ThePants999; 07-08-2018 at 9:46 PM.
    • tizerbelle
    • By tizerbelle 8th Aug 18, 6:48 AM
    • 1,496 Posts
    • 3,237 Thanks
    tizerbelle
    Inflation is exponential, why would ground rent not be?

    Make sure the ground rent increases aren't too big, sure. They'll usually be exponential, though.
    Originally posted by ThePants999
    On the type of lease this property will have there won't be any increases in the ground rent at all, ever. The amount of ground rent is specified in the lease and there will be no clause within the lease to increase it. My ground rent was set at 1.2s.10d in 1885, this was converted to 1.14 in 1971 when the UK decimalised. It is still 1.14 now and will be until the lease ends in the year 2884.
    • moneyistooshorttomention
    • By moneyistooshorttomention 8th Aug 18, 8:57 AM
    • 16,409 Posts
    • 45,430 Thanks
    moneyistooshorttomention
    Pffttt! Peanuts - dust of peanuts in fact.

    No big deal to go in wherever-it-is once a year and get a bit of small change out of your purse for that. Or maybe make an arrangement to pay up the next, say, 40 years worth of that at once - still minimal and you could then forget about it for the next 40 years (by which time you'd have probably long since sold the house on).
    ****************
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