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[Field Marshal Dr. Opti]

My father in law purchased a new four bedroom detached house in 1971. It came with it's own garage and cost the princely sum of £5,000...!!!!!

It is a leasehold property. He pays a peppercorn rent twice a year. He was offered the freehold at the time of purchase (£100). He declined. ......a decison he now regrets.

He has been informed that any property with less than seventy years remaining on the lease will be difficult to sell. Apparently the banks are unwilling to lend on such properties... :-/

Does anyone know how much the freehold would cost today?

Would an extended lease be a better less expensive alternative?

Any ideas please...

[Andy B]

My father in law purchased a new four bedroom detached house in 1971. It came with it's own garage and cost the princely sum of £5,000...!!!!!

 ...........

Quite expensive then. My parents bought their present 3 bed semi a couple of years earlier for around £2200 

[Marks DTM Calib]

A lot more than £100.

You need a valuation done, then you ahev to apy all legal costs and I would expect the cost to buy would be 5 figures.

[Field Marshal Dr. Opti]

My father in law purchased a new four bedroom detached house in 1971. It came with it's own garage and cost the princely sum of £5,000...!!!!!

 ...........

Quite expensive then. My parents bought their present 3 bed semi a couple of years earlier for around £2200 

It cost twice his annual wage Andy. He tells me he was earning £50 a week at the time. £2,500 pa.

The average house is currently Seven or eight times the average wage. Little wonder it is so difficult for people to get a foot on the housing ladder these days.... :-/

[Field Marshal Dr. Opti]

A lot more than £100.

You need a valuation done, then you ahev to apy all legal costs and I would expect the cost to buy would be 5 figures.

Is there a formula that links the freehold cost to the value of the house today.....£200,000 ish?

[tunnie]

Freehold for £100? That would have been a steal!

My flat cost me 5 times my salary when I bought it last year.

Its very common to find mortgage companies not lending to leases with sub 75 years.

[Field Marshal Dr. Opti]

Freehold for £100? That would have been a steal!

My flat cost me 5 times my salary when I bought it last year.

Its very common to find mortgage companies not lending to leases with sub 75 years.

And you are minted Mr Tunnie... Imagine the poor bastards on less than £15,000 pa. They have no chance of ever owning their own home... :-/

[tunnie]

Freehold for £100? That would have been a steal!

My flat cost me 5 times my salary when I bought it last year.

Its very common to find mortgage companies not lending to leases with sub 75 years.

And you are minted Mr Tunnie...

No, I have a huge mortgage! With a monthly payment to match (a 4 figure one!)

[Marks DTM Calib]

A lot more than £100.

You need a valuation done, then you ahev to apy all legal costs and I would expect the cost to buy would be 5 figures.

Is there a formula that links the freehold cost to the value of the house today.....£200,000 ish?

Sadly no.

[Field Marshal Dr. Opti]

Freehold for £100? That would have been a steal!

My flat cost me 5 times my salary when I bought it last year.

Its very common to find mortgage companies not lending to leases with sub 75 years.

And you are minted Mr Tunnie...

No, I have a huge mortgage! With a monthly payment to match (a 4 figure one!)

The problem today is that house prices bear no relation to wages. My father in law worked as a simple toolmaker.......but was easily able to afford a detached house on his wage alone. No overtime or second wage was allowed.....or needed.

[tunnie]

Freehold for £100? That would have been a steal!

My flat cost me 5 times my salary when I bought it last year.

Its very common to find mortgage companies not lending to leases with sub 75 years.

And you are minted Mr Tunnie...

No, I have a huge mortgage! With a monthly payment to match (a 4 figure one!)

The problem today is that house prices bear no relation to wages. My father in law worked as a simple toolmaker.......but was easily able to afford a detached house on his wage alone. No overtime or second wage was allowed.....or needed.

I keep hear people saying that, and seeing it on the news. Thing is, if you put effort in you can buy without any trouble.

I graduated from Uni in 2007, got a job that year and started work. After about 2 years of setting into the job and getting used to working life I started saving.

I chose to stay at home in Northamptonshire & commute to London, although this was expensive (£550+ a month) - It was cheaper than renting.

In 3 years I saved approx £35k, some of it got spent on learning to ride a motorbike, snowboarding gear & holidays 

Before anyone asks, no bank of mum and dad. I lived at home & saved!

2010 I bought my flat which was advertised for £215k, I put the deposit down, paid the fee's and moved in.

My parents helped me with furnishing the flat, plan was to sell the BMW to fund that, but Mother & FatherT very kindly stepped in to help me get the flat setup.

Might have something to do with the BMW staying at my parents, so it would be an excuse for me to go home once in a while 

Mate I've known since School, he also is in a position to buy, but not done it yet, he works for BBC so is a bit cautious about buying at present!

My old Team Leader is now married with baby on the way, he just a couple of years old than me, they have 3 houses between them!

It can be done!

[Andy B]

.....
I chose to stay at home in Northamptonshire & commute to London, although this was expensive (£550+ a month) - It was cheaper than renting.

In 3 years I saved approx £35k, some of it got spent on learning to ride a motorbike, snowboarding gear & holidays 

Before anyone asks, no bank of mum and dad. I lived at home & saved!
 .......

 

But did Mum & Dad charge you any kind of rent, if you were saving a grand a month I suspect not or not very much 

[tunnie]

.....
I chose to stay at home in Northamptonshire & commute to London, although this was expensive (£550+ a month) - It was cheaper than renting.

In 3 years I saved approx £35k, some of it got spent on learning to ride a motorbike, snowboarding gear & holidays 

Before anyone asks, no bank of mum and dad. I lived at home & saved!
 .......

 

But did Mum & Dad charge you any kind of rent, if you were saving a grand a month I suspect not or not very much 

No rent, but I serviced the fleet of Omegas!

[ninjapirate]

its not that simple tho for most people. i was lucky to buy when i was 18 and have a few propertys i rent out now.
however, ive lots of friends with no chance to save £35k in 3 years, unless your living at home and not paying all the bills, or if they have children or didnt go to uni and dont have a well paid job. 
The main point is in lots of areas house prices are far more then the banks are willing to lend without a massive deposit. if your renting which most are by that age its going to take a lot of saving.
It can still be done tho, on the other side of the coin ive got a few friends around 30 and under all buying their 1st houses, who have rented for a few years, depends where you need to live i guess and how kind life has been to you 

[Field Marshal Dr. Opti]

Freehold for £100? That would have been a steal!

My flat cost me 5 times my salary when I bought it last year.

Its very common to find mortgage companies not lending to leases with sub 75 years.

And you are minted Mr Tunnie...

No, I have a huge mortgage! With a monthly payment to match (a 4 figure one!)

The problem today is that house prices bear no relation to wages. My father in law worked as a simple toolmaker.......but was easily able to afford a detached house on his wage alone. No overtime or second wage was allowed.....or needed.

I keep hear people saying that, and seeing it on the news. Thing is, if you put effort in you can buy without any trouble.

I graduated from Uni in 2007, got a job that year and started work. After about 2 years of setting into the job and getting used to working life I started saving.

I chose to stay at home in Northamptonshire & commute to London, although this was expensive (£550+ a month) - It was cheaper than renting.

In 3 years I saved approx £35k, some of it got spent on learning to ride a motorbike, snowboarding gear & holidays 

Before anyone asks, no bank of mum and dad. I lived at home & saved!

2010 I bought my flat which was advertised for £215k, I put the deposit down, paid the fee's and moved in.

My parents helped me with furnishing the flat, plan was to sell the BMW to fund that, but Mother & FatherT very kindly stepped in to help me get the flat setup.

Might have something to do with the BMW staying at my parents, so it would be an excuse for me to go home once in a while 

Mate I've known since School, he also is in a position to buy, but not done it yet, he works for BBC so is a bit cautious about buying at present!

My old Team Leader is now married with baby on the way, he just a couple of years old than me, they have 3 houses between them!

It can be done!



 

Yes. And all credit to you... But I imagine that you are earning far more than many people.  Also, three years rent free is a luxury most people never experience. As for repairing/servicing Omegas.........every one knows they are so reliable that they never break down or need mending.....