Coppen Estates buying freehold for land

[Gza66 10]

We recently bought a property on the S13 area. It's lease hold and we have to pay the ground rent to Coppen Estates. Has anybody recently bought the lease in S13 area or close by and would you mind telling me how much it cost. Also we recently got a bill from Coppen estates for £45 for the 'annual insurance charge. Doed anybody know what this might be for? Doesn't look like the previous owner of the house had paid an annual insurance and no explanation has arrived with the invoice.

 

Thanks Gza66

 

---------- Post added 18-07-2014 at 17:43 ----------

 

P.s I have contacted our solicitors about this but wondered if anybody might know in meantime whilst we wait for a reply from them.

[Jeffrey Shaw 90]

1. The value of the freehold reversion largely depends on:

a. how many years are unexpired on your lease; and

b. the amount of ground rent.

 

2. The £45 is probably Coppen's fee for allowing you a choice of property insurer. You can escape it by:

a. buying the f/r; or

b. using your rights under s.164 of the Commonhold and Leasehold Reform Act 2002.

[Gza66 10]

Thanks for your reply Jeffrey. I had thought it might be to do with us using our own insurer. We haven't been informed that they have their own preferred insurer though.

The lease is 800 years and the house was built in the 1930's so still has a lot of unexpired years left.

 

---------- Post added 28-07-2014 at 08:34 ----------

 

P.s the ground round is £1.80 a year I think

[Jeffrey Shaw 90]

So- as guess only buying the f/r ought to cost you:

a. about £50-60 purchase price;

b. about £200-300 for Coppen's fees; and

c. about £250-350 for your own solicitor's fees.

 

And, yes- these figures make the f/r purchase quite expensive in relative terms.

Whereas using the s.164 procedure to escape an insurance tie costs only your own legal fees.