Leasehold Vs Freehold

[mancityvstoke]

I'm buying a bungalow for my dad to move him from London.

I've found a lovely one in Alkrington but it's leasehold with a ground rent of 10 quid a year and 900 odd years left.

Should I walk away? It's ideal for him though.

I've been told it's not a problem but what's the point of these leases?

 

[gordondaviesmoustache]

I'm buying a bungalow for my dad to move him from London.

I've found a lovely one in Alkrington but it's leasehold with a ground rent of 10 quid a year and 900 odd years left.

Should I walk away? It's ideal for him though.

I've been told it's not a problem but what's the point of these leases?

I'm not an expert but I think these long leases come into being where a plot of land has been divided up. It sounds like the bungalow was built after an adjoining property was already in situ. I think it's dealt with in that way to preserve rights of way etc. 900 years is as good as a freehold to all intents and purposes.

 

[mancityvstoke]

ok cheers matey...yes it may have been built in a large garden.

 

[Tragic meat van guy]

Its not the same issue as it can be down south due to the length left on the lease and the low cost of the ground rent. Its in effect freehold unless you hold on to the bungalow for 10 generations (or your old man is some sort of cyborg with 900 yr lasting batteries) ;-)

 

[kippaxblue76]

It isn't a problem mate, just to put your mind at rest ring your solicitor and they will confirm it.

 

[Blue Maverick]

£10 lucky bastard, I'm in a new build its £150 and doubles every 10 years I didn't realise this until I signed for the house, robbing bastards I live in Oldham ffs not Knightsbridge

 

[mancityvstoke]

Oldham is deffo not Knightsbridge :))

Checked the land registry and it seems ok. Lease started in 1958 for 999 years.

Although I googled the administrators who seem a bit mean not sending reminders out then charging a £70 fee for admin charges and late payments.

Can they increase the 10 quid ground rent or is that fixed for the life of the lease?

Solicitor says they can't increase it but is he right?

I've heard you can buy the lease out too.

https://www.gov.uk/leasehold-property/buying-the-freehold

I'm becoming an expert

 

[supercity88]

It's not a problem, but do be wary of ground rent increases. Estate charges etc can often increase over time and there's not a lot you can do about it. It's not too different from a freehold considering the length of the leasehold. I assume it was set up as a 999 year lease.

 

[aguero93:20]

Its not the same issue as it can be down south due to the length left on the lease and the low cost of the ground rent. Its in effect freehold unless you hold on to the bungalow for 10 generations (or your old man is some sort of cyborg with 900 yr lasting batteries) ;-)

Your family get to a seriously old age before having kids. It'd be around 30 generations in my family and nearly 70 generations for most of Drogheda.

 

[canyerdogputoutafire]

Some freehold companies also dictate which insurers you can use.