Buying a leasehold/ground rent -advice please.

[Drew3 103]

Hello fellow Soulsourcers.

Is there anyone who has recent experience of this or works in a field where you have knowledge regarding the rules/legislation/considerations involved with buying the leasehold/ground rent on a residential property and is willing to open up a PM line of communication with me to offer some guidance?

I know that there is recent government legislation regarding ground rents being removed/altered but what I have found on the Net isn't easy to follow and appears to cover the issue in regards to 'new builds'.  I could do with some 'no obligation' basic advice and I know that the good folks on here have a wealth of knowledge on all sorts of things.

Regards.

Drew. 

[Tomangoes 3,053]

Well Drew

A freind of ours just bought a 99 leasehold on a flat.

He paid £70k.

Most flats are leasehold due to common elements like the roof and stairwell etc.

Then there's ground rent and building maintenance and possibly insurance.

A solicitor should tell you if the variable costs and terms and conditions are reasonable.

Zoopla should tell you what other similar properties sold for, but not sure if the lease term included.

Other readers may elaborate on the fine points, but the solicitor should help you decide if you are getting a good deal.

Good luck

Ed

 

[Drew3 103]

18 hours ago, Tomangoes said:

Thanks Ed, much appreciated.  

Regards.

Drew.

 

 

[Stevegods 1,496]

Drew , 

In Liverpool there are many houses that are leasehold ... Most are a remnant from the wealthy landowners and then passed on to the Local Authority, but some are kept in trusts or still owned by them . Both Lord Blundell and the Earl of Sefton had very large estates , that had built lots of houses in and around the city .

I lived in one in L4 Anfield and still own two. These where cheap houses at one point , but very well built, and the ground rent was a peppercorn rent , a nominal amount. The leases are really long - 999 years .. so in all respects , just like living in a Freehold. I bought my two years ago , and bought the freehold back on both. These where bought as a top up for my pension .. and rent out really well.

The trouble is that in recent years , companies have moved in to try and buy large stocks of leases and then reword the tenancy and try and either increase the ground rent or charge a larger amount for the lease purchase. Leases bought back direct from the Council or the original land owner where / are cheap - £200 / £400 . Now some companies are charging £2000 -£3000 for the same leases . 

Buying a leasehold house shouldn’t be an issue as long as it’s in good condition and has a really long lease ... 

Hope that helps - always PM for a chat 

Steve