Freehold advice.

[abu13]

Just wondering if it would be beneficial to purchase the freehold on a property outright or not, a family member has a property where the ground rent is £15 a year with 55 years remaining on the freehold.

The house is likely to be sold in the next 20 years and so the concern is how this may affect any future sale.

We can buy out the free fold for around £4k.

Is there any point, any advise would be appreciated.

 

[David White]

Do you mean there’s 55 years remaining on the leasehold agreement? I’ve just had to extend the lease on a property I have just sold. It cost roughly 5k with legal fees.

If you don’t extend the term of lease or purchase the freehold the property is unmortgageable. Buy it if you can.

 

[grunge]

I’d personally ( just looking at buying myself ) would say absolutely, lease hold your still in effect renting your house as your renting the land and the land owner can take it back at the end and can just hike the rent as and when.

And I’d definitely buy it out of you want to pass the house on to kids.

 

[abu13]

Do you mean there’s 55 years remaining on the leasehold agreement? I’ve just had to extend the lease on a property I have just sold. It cost roughly 5k with legal fees.

If you don’t extend the term of lease or purchase the freehold the property is unmortgageable. Buy it if you can.

Yep, thats right, when the house was purchased it had 99 years on the leasehold this now has 55 years remaining.

 

[markbmcfc]

Absolutely, i'm pretty sure whoever owns the lease can sell it, and then whoever buys it could charge you double (or more) to buy it.

 

[Tuearts right boot]

Wasn't or isn't that some sort of con.

 

[denislawsbackheel]

No.

There is a great deal of misinformation and misunderstanding out there.

OP buy it - it’s a no brainer.

As already pointed out it is unmortgageable as stands.

 

[Blue Maverick]

Buy it now before it goes up, you’ll not be able to sell it in 20 years no one will be able to get a mortgage on it

 

[DT King of all Geordies]

£4k seems a bargain. Check out https://www.lease-advice.org it has a calculator on there I think.

 

[goat boy]

More and more unscrupulous c***s are taking advantage of leaseholds, buy it outright if you can. Personally i wouldn't buy a leasehold property unless the freehold was available in the sale. The ultimate captive market, it's in the process of being outlawed for new build single dwellings.