Do all lease restrictions become null and void?
1:13 PM, 24th January 2018, 8 years ago
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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
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Member Since February 2011 - Comments: 3454 - Articles: 286
1:16 PM, 24th January 2018, About 8 years ago
Hi Kev,
There may still be restrictive covenants for the area eg.
No fences taller than x feet, colour of doors. trees etc.
Member Since September 2016 - Comments: 20 - Articles: 1
1:46 PM, 24th January 2018, About 8 years 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!
Member Since February 2011 - Comments: 3454 - Articles: 286
2:47 PM, 24th January 2018, About 8 years ago
Hi Tim,
No stamp duty on anything below £40k and once you own the freehold it is much simpler 🙂
Member Since September 2016 - Comments: 20 - Articles: 1
3:23 PM, 24th January 2018, About 8 years 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?
Member Since February 2011 - Comments: 3454 - Articles: 286
3:52 PM, 24th January 2018, About 8 years ago
As long as the cash changing hands is less than 40k correct
Member Since September 2016 - Comments: 20 - Articles: 1
4:45 PM, 24th January 2018, About 8 years ago
Perfect cheers. Will update with any findings on Friday.
Member Since September 2016 - Comments: 20 - Articles: 1
8:36 AM, 27th January 2018, About 8 years 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.
Member Since January 2018 - Comments: 4
10:51 AM, 2nd February 2018, About 8 years 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.
Member Since September 2016 - Comments: 20 - Articles: 1
1:52 PM, 2nd February 2018, About 8 years ago
This is useful thanks I’ll see what I can find out and let you know the outcome.
Member Since July 2013 - Comments: 754
10:54 AM, 5th February 2018, About 8 years ago
The lease will be extinguished once you have acquired the superior (freehold) interest.