Buying freehold for our 2 bed semi
9:46 AM, 17th August 2017, 9 years ago
8
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I’m looking to purchase the freehold from Simarc for our 2 bed semi house once we’ve lived here for two years. We pay £40 per year ground rent.
By the time we look to purchase, there will be c960 years left on the lease.
Has anyone any experience in buying the freehold from a leaseholder? Do they all calculate costs in a similar way? What sort of fee should I be prepared for?
Finally, is there anyway around the £96+VAT admin fee JUST to get a quote from them? This seems excessive!
Many thanks
Kevin
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Member Since February 2011 - Comments: 3454 - Articles: 286
9:49 AM, 17th August 2017, About 9 years ago
Hi Kevin,
Is this one of the new developments where they are all leasehold and then the developer sells on the freehold later as the practice has had a lot of bad press recently?
Member Since August 2017 - Comments: 3
10:59 AM, 17th August 2017, About 9 years ago
There is a statutory formula if you can’t agree. LEASE has an advice guide called “Houses”
Member Since May 2015 - Comments: 2204 - Articles: 2
1:22 PM, 17th August 2017, About 9 years ago
Reply to the comment left by Robert Dean at 17/08/2017 – 10:59
Why not work out the price according to the LEASE guidelines and then make them an offer, somewhat below the guide price to give you room to negotiate.
If you do not like the outcome then you can take the case to the First Tier Tribunal.
Member Since January 2016 - Comments: 473
5:00 PM, 17th August 2017, About 9 years ago
Have you got a particular reason for wanting to purchase the Freehold? Does the ground rent go exponential for example?
I ask because there can be situations where a long Lease is better than a Freehold particularly where there are covenents in place.
Member Since December 2013 - Comments: 13
6:14 PM, 17th August 2017, About 9 years ago
Just picking up a mid terrace house tomorrow cost me £56000 but deceased owners son payed £17500 (ouch) for the freehold was a short lease left. A friend’s semi was a similar price.. quite common in grimsby leasehold houses only a real issue when you come to sell with a short lease they become unmorgagable. Id rather pay the £40 a year..
Member Since August 2016 - Comments: 1190
7:25 PM, 17th August 2017, About 9 years ago
Reply to the comment left by ben whitley at 17/08/2017 – 18:14
Yes a short lease will increase the freehold massively. With a long lease and assuming the ground rent increases (if any) are reasonable then freeholds are currently trading around 20 times the annual ground rent. So all things being equal in the case of Kevin’s purchase he could be looking at a price of £800 plus legal fees to obtain the freehold.
Member Since September 2016 - Comments: 20 - Articles: 1
10:38 PM, 17th August 2017, About 9 years ago
Thank you for all of your replies they are all appreciated.
The lease is fairly straight forward and the rent doesn’t increase in future though there’s nothing stopping them selling on and another company coming in to increase.
Looking to buy as I would always rather be in control of my own destiny.
Interested to hear more about what django said; can you elaborate why you think it can be better?
I’m also looking at a ground floor extension side and rear; they’re charging c£400 to look at that with no guarantee of approval. Shocking!
Member Since August 2016 - Comments: 1190
10:43 PM, 17th August 2017, About 9 years ago
Reply to the comment left by Kevin McLandlord at 17/08/2017 – 22:38
If the freehold is sold then the new freeholder cannot increase the ground rent. It can only collect the rent as per what is provided for in the lease. The new freeholder cannot vary the ground or any other aspect of the lease.