Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[STEMO]

I made an enquiry about a house for sale this afternoon, it was about eight years old. I'd previously looked at a listing for another in the same street and noticed that one was leasehold. No mention of the tenure on the one I was looking at so I phoned the estate agent. A lovely young lady called Verity told me she didn't know but would find out. Sure enough, leasehold, so I did a bit of digging:
http://www.thisismoney.co.uk/money/mortgageshome/article-3088134/The-great-divide-Buy-165-000-house-left-road-outright-buy-one-right-don-t.html?login#readerCommentsCommand-message-field

Slimy bastids.

[Field Marshal Dr. Opti]

The vast majority of houses these days are freehold.....and rightly so.

Leasehold property is a 'left over' from the old fuedal system where the lord of the manor allowed you to build on land that he still owned.

It is possible to buy the freehold but it can be very expensive. People may take out a longer lease (up to 999 years) as a cheaper option.

Personally speaking I would avoid a leasehold property unless it was inexpensive.

[STEMO]

I agree entirely. The part that made me indignant was the fact that the pond life agent made no mention of it in the listing, so you view, make an offer, get a solicitor, who then finds out and tells you. Time and money down the drain, and disappointment for buyer and seller. 

[STEMO]

And as for your comment about 'inexpensive', it may be at first, but you have no control over the annual review.

[Field Marshal Dr. Opti]

And as for your comment about 'inexpensive', it may be at first, but you have no control over the annual review.

Our first house was leasehold and the owner is usually aware of the cost of the 'ground rent' well into the future.

From memory our lease stated something along the lines of £40 PA till 2002 then £60 PA until 2025.

The house was bought in 1990.

Beware of the lease (usually 99 years) becoming shorter though. Many banks will not lend on a house with less than 60 years remaining......and the shorter the lease becomes the less the house may be worth.....until you reach deep into your pocket and buy the freehold.

[Field Marshal Dr. Opti]

I made an enquiry about a house for sale this afternoon, it was about eight years old. I'd previously looked at a listing for another in the same street and noticed that one was leasehold. No mention of the tenure on the one I was looking at so I phoned the estate agent. A lovely young lady called Verity told me she didn't know but would find out. Sure enough, leasehold, so I did a bit of digging:
http://www.thisismoney.co.uk/money/mortgageshome/article-3088134/The-great-divide-Buy-165-000-house-left-road-outright-buy-one-right-don-t.html?login#readerCommentsCommand-message-field

Slimy bastids.

So you didn't buy it then?

[Andy B]

.... on a house with less than 60 years remaining..........

Which is where our house is heading ........ built early 80s with a 99yr lease. 

[Field Marshal Dr. Opti]

.... on a house with less than 60 years remaining..........

Which is where our house is heading ........ built early 80s with a 99yr lease. 

It might be worth checking out the price of the freehold. I'm told the longer you wait the more it can cost.

[STEMO]

.... on a house with less than 60 years remaining..........

Which is where our house is heading ........ built early 80s with a 99yr lease. 

It might be worth checking out the price of the freehold.

I'd say definitely worth it, the sooner the better.

[STEMO]

Apparently, this situation is not as unusual as I thought.

[Andy B]

.... on a house with less than 60 years remaining..........

Which is where our house is heading ........ built early 80s with a 99yr lease. 

It might be worth checking out the price of the freehold.

I'd say definitely worth it, the sooner the better.

It's something we intend doing. We were offered it years ago, but being a young family we just didn't have the money.

[Andy H]

.... on a house with less than 60 years remaining..........

Which is where our house is heading ........ built early 80s with a 99yr lease. 

I think the 'right to buy' legislation that originally allowed council house tenants to buy the properties they lived in has been extended/amended/supplemented to give leaseholders more rights - in particular I think you may now have have the 'right to buy' for your leasehold

https://www.gov.uk/leasehold-property/buying-the-freehold

http://www.moneysavingexpert.com/mortgages/buy-freehold-right-to-manage

[Andy B]

..... ....
I think the 'right to buy' legislation that originally allowed council house tenants to buy the properties they lived in has been extended/amended/supplemented to give leaseholders more rights - in particular I think you may now have have the 'right to buy' for your leasehold

https://www.gov.uk/leasehold-property/buying-the-freehold

http://www.moneysavingexpert.com/mortgages/buy-freehold-right-to-manage

Thanks for that Andy 

[Rods2]

Leaseholds can also be extended and if iirc normal once a property lease fall below 50 years, as I'm sure M'Lud being very coy is well aware of as he owns most of the leaseholds in Lincolnshire.

[Field Marshal Dr. Opti]

Leaseholds can also be extended and if iirc normal once a property lease fall below 50 years, as I'm sure M'Lud being very coy is well aware of as he owns most of the leaseholds in Lincolnshire.

You flatter me, Mr Rods.

I own less than 40%.