Freehold Purchase Advice

[creweblade 10]

Hi - after some advice - have house in Sheffield worth about £190k and has 145 years left on lease and we pay £16pa ground rent - was quoted £5k for buying lease plus would have my legal costs about £500 per my solicitor - any thoughts if reasonable or not and/or worth doing? Thanks 

[Padders 2,849]

18 minutes ago, creweblade said:

Hi - after some advice - have house in Sheffield worth about £190k and has 145 years left on lease and we pay £16pa ground rent - was quoted £5k for buying lease plus would have my legal costs about £500 per my solicitor - any thoughts if reasonable or not and/or worth doing? Thanks 

£16 pa.

30pence a week.

And your thinking of paying £5500 to buy the lease.

 

[Jim Hardie 523]

If you’re planning to stay there long term it might be worth it. It’ll make it easier to sell when the time comes. Otherwise, I wouldn’t bother with that length of lease.

If you decide to purchase the lease, try to negotiate the price down.

Edited February 17, 2022 by Jim Hardie

[Thorpist 72]

There is a big push politically to sort out leaseholds and hopefully bring down purchase cost , so check out your personal situation 

[crookesey 631]

11 hours ago, creweblade said:

Hi - after some advice - have house in Sheffield worth about £190k and has 145 years left on lease and we pay £16pa ground rent - was quoted £5k for buying lease plus would have my legal costs about £500 per my solicitor - any thoughts if reasonable or not and/or worth doing? Thanks 

145 years left, how long do you aim to live? 😉

[BigAl1 143]

The issue you need to look at is will the £5000 you pay add more than that to the value of the property if or when you may wish to sell

[peteh1 10]

Another thing to consider, if you wish to make changes / improvments you may need landlord permission which will likely incur costs.

[Jeffrey Shaw 90]

Either way, £5000 is much too much to buy the freehold reversion for a long lease yielding £16 p.a. I'd guess that a fair price might be £500! If you do want to buy, obtain proper legal advice and ensure service of a Notice of Claim [Leasehold Reform Act 1967].

[Mr Bloke 1,445]

27 minutes ago, Jeffrey Shaw said:

Either way, £5000 is much too much to buy the freehold reversion for a long lease yielding £16 p.a. I'd guess that a fair price might be £500! If you do want to buy, obtain proper legal advice and ensure service of a Notice of Claim [Leasehold Reform Act 1967].

Hmmm...

So, just out of curiosity, how does that work then Mr Jeffrey?

What if the lease holder is not prepared to drop the price?

Presumably there's no 'law' that says they have to sell at a 'fair price'?

[geared 302]

On 20/02/2022 at 19:06, Mr Bloke said:

Hmmm...

So, just out of curiosity, how does that work then Mr Jeffrey?

What if the lease holder is not prepared to drop the price?

Presumably there's no 'law' that says they have to sell at a 'fair price'?

 

Yes, if the seller is being unreasonable with the price it can go a more formal route and have a price set for them..

 

They can ask what they like, but push comes to shove they won't receive anything like that.

Edited February 23, 2022 by geared

[Jeffrey Shaw 90]

On 20/02/2022 at 19:06, Mr Bloke said:

What if the lease holder is not prepared to drop the price?

Presumably there's no 'law' that says they have to sell at a 'fair price'?

Aren't you the leaseholder?

[topflat29 10]

The Government has plans for leasehold reform including purchase of freehold title during 2022-2023 . 

 

With 145 years remaining  on the lease ,  you can afford to wait.  

 

But  you  make an offer  based on Jeffrey's estimate of £500  fair price  for the freehold title   and  check  if there is any interest  to sell..