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By (user no longer on site) OP
over a year ago
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I reacently bought a new build house
It is a lease hold property so I own the building
But some one else owns the free hold and I have to pay ground rent. The lease is £125 a year and the term is 125 years
I have approached the free holder and enquired how much the free hold would cost.
This is in the order of 3k
My question is, is it worth buying the lease, is it likely that I will recoupe this money in savings in ground rent and other charges. Is the property likely to be worth more at time of resale.
Or would I be better off spending the money on boats
Cap'n hornpipe
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"I reacently bought a new build house
It is a lease hold property so I own the building
But some one else owns the free hold and I have to pay ground rent. The lease is £125 a year and the term is 125 years
I have approached the free holder and enquired how much the free hold would cost.
This is in the order of 3k
My question is, is it worth buying the lease, is it likely that I will recoupe this money in savings in ground rent and other charges. Is the property likely to be worth more at time of resale.
Or would I be better off spending the money on boats
Cap'n hornpipe
"
If you can afford to buy the freehold then you should - it will make the property easier to sell on. Whilst you currently have a lengthy lease, the less years left on it make it harder to sell (unless your purchaser has a useless solicitor) |
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What did your solicitor advise? In these circumstances they normally talk you through the pros and cons before the sale.
We had a similar house in Bristol - we didn't bother buying the lease. There are normally restrictions related to the ground-rent (extensions, front gardens etc), so it depends whether or not you want to avoid any of those.
Mr ddc |
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By (user no longer on site)
over a year ago
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Talk to your lawyer regarding the legal issues.
It might also be worth talking to an estate agent regarding what they think the difference in value would be (if any) based on prior experience.
-Courtney |
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By (user no longer on site)
over a year ago
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OP, technically you do not own the building. You own the lease of the building. If it is a house then it may or may not make a difference in financial terms whether you purchase the freehold. You need to look at the terms of the lease (and the negotiated transfer) - possible restrictions, charges, responsibilities, covenants, etc. No one can answer your question on the basis of the scant information available. |
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By (user no longer on site)
over a year ago
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Buy the lease if you can,try and negotiate a better rate as well.
Also 125 left on a lease really isn't that long so if you don't buy it you need to get the lease extended go 999 years if possible.
Google is good for this and has lots of info.
Good luck |
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By (user no longer on site)
over a year ago
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I would imagine it would depend on how long you are planning on staying? Short term, probably stay with the lease, long term you may be better off trying to buy the lease.
It could be easier to sell if you own the lease as a previous poster has said, but don't forget to factor in the solicitors fees if you do decide to buy. |
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By (user no longer on site)
over a year ago
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"Buy the lease if you can,try and negotiate a better rate as well.
Also 125 left on a lease really isn't that long so if you don't buy it you need to get the lease extended go 999 years if possible.
Google is good for this and has lots of info.
Good luck"
Without knowing the terms of the leasehold, you really should not make general recommendations. It might contain favourable or unfavourable conditions. The OP, I am afraid, needs legal advice. Yes, that will cost money, but it could save him more in the long run.
I am really not sure why he bought a new build house on leasehold terms to begin with. It does seem a bit of a rum situation so I suspect there is more to it. |
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By (user no longer on site) OP
over a year ago
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When I was buying, a lot of new builds at least in the area I wanted to live were lease hold. I'd of obviously preferred freehold but they were not available.
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