Do all lease restrictions become null and void?

by Readers Question

13:13 PM, 24th January 2018
About 9 months ago

Do all lease restrictions become null and void?

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Do all lease restrictions become null and void?

I’ve been quoted a figure to purchase the freehold for my semi detached house which I’m happy to pay.

Has anyone any experience of purchasing the freehold interest in a house?

Does it mean if I go to sell the house in future that I’m selling the house and the land it’s on, or does the house just become freehold and any and all lease restrictions are null and void?

Any help appreciated.

Kev



Comments

Neil Patterson

13:16 PM, 24th January 2018
About 9 months ago

Hi Kev,

There may still be restrictive covenants for the area eg.
No fences taller than x feet, colour of doors. trees etc.

Kevin McLandlord

13:46 PM, 24th January 2018
About 9 months ago

Thanks Neil.

Any idea if there are any additional costs involved from elsewhere? I've read things about potential stamp duty implications...

I have a call with the leasehold advisory service on Friday and will update with my findings.

Theres little about buying the freehold for houses online, particularly what happens once you own it!

Neil Patterson

14:47 PM, 24th January 2018
About 9 months ago

Hi Tim,

No stamp duty on anything below £40k and once you own the freehold it is much simpler 🙂

Kevin McLandlord

15:23 PM, 24th January 2018
About 9 months ago

Thanks Nigel.

So you would only pay stamp duty as a percentage of the cost of the freehold purchase and as that is under 40k it's exempt?

Neil Patterson

15:52 PM, 24th January 2018
About 9 months ago

As long as the cash changing hands is less than 40k correct

Kevin McLandlord

16:45 PM, 24th January 2018
About 9 months ago

Perfect cheers. Will update with any findings on Friday.

Kevin McLandlord

8:36 AM, 27th January 2018
About 9 months ago

The leasehold advisory service confirmed that, providing there are no estate management or communal agreements (which there aren't here) then once paid the house is then freehold and can be sold as freehold in future.

Ant Homin

10:51 AM, 2nd February 2018
About 9 months ago

But I assume you will still have a “leasehold” and a “freehold” albeit both being owned by yourself but the property will still be registered as both and subject to the legal requirements and obligations of each unless you dissolve the lease and revise or create a new freehold without the lease. Perhaps a technicality but may be an issue with your (or future owner’s) mortgagee if they don’t lend on leaseholds or don’t like leasehold properties with the freeholder also being the leaseholder.

I assume you would need to change or create a new "freehold" to give it the conventional freehold status ie legal fees, stamp duty, land registry fees, changing the mortgage etc etc

I’m not an expert but may be worthwhile getting independent advice from both a solicitor, mortgage advisor and knowledgeable estate agent to advise how it will affect you and any restrictions for future purchasers and potential limitations on the future sale of the property.

Kevin McLandlord

13:52 PM, 2nd February 2018
About 9 months ago

This is useful thanks I'll see what I can find out and let you know the outcome.

Freda Blogs

10:54 AM, 5th February 2018
About 8 months ago

The lease will be extinguished once you have acquired the superior (freehold) interest.

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