Buying a Leasehold House

[Bonjon]

I'm in the process of buying a new house that is leasehold, it has about 750 years left on the lease, is it worth buying the lease, and if so how much would it likely cost?

 

The current rent is £15 every 6 months.

 

Thanks

[ttparsons]

Suppose you are going to live there for 20 years. It will cost you £600. Can you buy the lease for £600? Doubtful. Will the house with only 730 years left on the lease when you sell it be worth less than a house with 750 years left? No. Will the fact it is not freehold put people off making an offer when you come to sell it? Maybe a few. See http://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/leasehold-v-freehold-whats-the-difference/#comment-7757

[mlfc]

Without knowing the cost to buy the freehold I don't think anyone can answer the question. Have you asked how much it is?

[geared]

Often the seller will have been offered the freehold and will be able to tell you the price, it's not usually a massive amount of money.

 

It's worth buying tho, I didn't even consider looking at leasehold houses when we last bought.

[Cyclone]

Without knowing the cost to buy the freehold I don't think anyone can answer the question. Have you asked how much it is?

 

There's a formula to work it out.

 

I'd be inclined to check into the history of the £15/6 months. The original lease amount was probably much lower and this may have been illegally increased.

 

---------- Post added 15-10-2014 at 10:41 ----------

 

Often the seller will have been offered the freehold and will be able to tell you the price, it's not usually a massive amount of money.

 

It's worth buying tho, I didn't even consider looking at leasehold houses when we last bought.

 

Most people don't really care when the lease is in the order of 10 or 15 generations.

[vincentb]

I'm in the process of buying a new house that is leasehold, it has about 750 years left on the lease, is it worth buying the lease, and if so how much would it likely cost?

 

The current rent is £15 every 6 months.

 

Thanks

 

Apart from the ground rent cost, as a leaseholder you're vulnerable to predatory landlords who buy up freeholds and try to make extra money out of the leaseholders by tricks like:

1. Demanding more ground rent because of 'administrative costs'
   
2. Demanding a fee for considering whether to permit building work
   
3. Demanding extra fees for transferring the lease when you sell the house
   

Even if they're definitely not entitled to any such extra fees, it's often hard to fight against them.

[Bonjon]

Thanks for the info, i'll defiantly look at the prospect of buying it, it's not a major concern as there is so long left on the lease, and it certainly didn't put us off.

[Cyclone]

Try this then

 

http://www.freeholdcalculator.com/freehold_simple.php

[xdbx]

I've been thinking the same, that calculator say it'll cost me £0?

[Cyclone]

Try the detailed one then. That's the cost for the actual purchase, there will be legal fee's on top, but basically a long term (hundreds of years) low value (<£10/annum) lease, isn't worth very much.