Leasehold Vs Freehold

[Mustard Dave]

It should not be an issue as said. If there was only a short term remaining, you can get them extended, but with 900 years on it, it isn't an issue. Get your solicitor to look into it and be aware of any restrictive covenants.

 

[Zubrman]

Some freehold companies also dictate which insurers you can use.

This is true. But don't accept the policy the freeholders then produce in their bill. Simply contact the reccommended insurer and organise your own policy, usually at an immense saving. This then satisfies the lease agreement and your bank balance!

 

[mancityvstoke]

good advice thanks

 

[kinkysleftfoot]

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?

Not really a problem , just check the details of the lease as may have some odd restrictions on it regarding works to the property. Solicitors fees will be a little higher for the conveyance. I have 9 leasehold properties with no problems

 

[George Hannah]

just remember Her Majesty owns the freehold

 

[stonerblue]

I think you can buy it out and the fee has a cap set by government at around £300. Could well be wrong though.

 

[stonerblue]

Some freehold companies also dictate which insurers you can use.

this is right

 

[Citizen of Legoland]

Also make sure you get a receipt for any leasehold payments you make, they don't always send them out. If you decide to sell in the future, you may need proof you are not in arrears and they will charge you to write a letter confirming it.

 

[denislawsbackheel]

I think you can buy it out and the fee has a cap set by government at around £300. Could well be wrong though.

Untrue. Are you thinking of ground rent, a different thing entirely.
You can buy it out, but it's a lot more expensive than that.

No one seems to have mentioned yet that you need the leaseholder's permission to do anything like new windows, extensions etc..
They usually make a nominal charge of a few hundred quid to give it.

 

[stonerblue]

Untrue. Are you thinking of ground rent, a different thing entirely.
You can buy it out, but it's a lot more expensive than that.

No one seems to have mentioned yet that you need the leaseholder's permission to do anything like new windows, extensions etc..
They usually make a nominal charge of a few hundred quid to give it.

That's the one.