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To ask if you’ve ever purchased the freehold for your property?

10 replies

ethelfleda · 27/01/2020 15:41

I’m posting here for traffic.

How long did the process take and was it straight forward? Would it be usually for you to have to pay a valuation firm, nominated by the owner of the freehold?

Thank you

OP posts:
DGRossetti · 27/01/2020 16:05

Yes.

We wanted to buy it the second we moved in, in 2002, but it's an incredibly opaque process and it seemed impossible to obtain the "rateable value" which is a figure that everything hinges on. Without that, you have no way of knowing what the true value should be. So it got put on a back burner ...

(The theory is very simple ... it's how much ground rent you would have paid to the end of the lease, plus a sweetener for losing the freehold plus a bung for all the single ladies in the village less your starsign squared. I think ...)

Fast forward 9 years ... as luck (?!) would have it, we had a knock on the door and it was our freeloaderholder. One of those "you couldn't make it up" moments. He was asking if we were interested in buying the freehold and DW (being in sales in a former life) acted very cool and said "maybe" ...

Anyway we had to pay his legal and surveyors costs which were just over £2K, plus the freehold. The figure for the freehold wasn't that far off what we would have been prepared to pay if we could have calculated it, so we didn't horse-trade.

The addendum to this is that about 2 years prior to that visit, we had a card popped into the letter box from a "freehold advisory service". We made enquiries and had a visit from the company, and their job was to negotiate freehold purchases. They didn't ask for a fee upfront, but made their money from whatever "saving" they negotiated between the initial freehold price, and whatever we finally ended up paying.

Unfortunately for this company, I am very distrusting, and they were never able to escape the fact that they approached us, rather than being picked out of the shows age Grin) Yellow Pages. To this day I still believe they were in cahoots with the free-loader--holder and would have worked to drive the value up, rather than down ...

Your starting point is here :

www.lease-advice.org/

Be prepared for some heavy bureaucratic nightmares though. In out case it was the local council simply denying there was ever such a thing as "rateable value" (I still have the email) and trying to palm us off onto the water authority (who replied "You what ?"). The whole experience made it seem as if nobody in the UK had ever once tried to buy their own freehold. Which, given the professions involved (surveyors and solicitors) should come as no surprise.

Here's a phrase you will encounter: Marriage value Smile.

If that hasn't put you off best of British, as my DM would have said.

ethelfleda · 27/01/2020 16:19

Ha - thanks for that account. Wonderful!

I actually have two scenarios going on at the mo that I am asking for!
My DM wanted to look into buying hers and asked for a valuation
I’m buying a BTL property who advised that they’re purchasing the freehold at the same time as we are purchasing the property and so it would be freehold on completion. This was three months ago and I’ve just found out that they haven’t got an up to date valuation yet...

OP posts:
DGRossetti · 27/01/2020 16:26

This was three months ago and I’ve just found out that they haven’t got an up to date valuation yet.

It gets a bit complicated because you are talking about the land not the building that stands on it. From there you need to factor in how much the freeholder would get if they sold the land not the house.

As I understood it.

As I say, no one is ever going to make it even remotely straightforward for you. The lack of "How to buy your freehold" books is no accident.

Also, you'll discover that invariably people (including Google) will start talking about flats not houses. The principle is the same, but flats have an inbuilt cheat as you can usually find out how much the last freehold went for.

Having heard how leases have gotten even worse than they were in the 1960s when DF moved here, I am so glad we bought ours. DFs advice was always to buy a house with the freehold or walk away. Sadly DWs condition mandated a bungalow, and they hardly grow on trees as it is. Let alone freehold.

ethelfleda · 27/01/2020 16:46

As I say, no one is ever going to make it even remotely straightforward for you. The lack of "How to buy your freehold" books is no accident

I see what you mean - you’re probably right here!
Thank you for replying and love the username btw. I recently went to look at a collection of your sketches at a National trust place Smile

OP posts:
DGRossetti · 27/01/2020 16:48

Thank you for replying and love the username btw. I recently went to look at a collection of your sketches at a National trust place

Grin

Sadly a man of his times Sad but as someone of equally mixed heritage, I thought ... why not ?

Lellochip · 27/01/2020 17:02

I bought mine during buying the house, and the most complicated part was actually finding the freeholder. The vendor had never paid anything to anyone, and we only had the paperwork for the original lease.

Once the solicitor had tracked him down it was easy though, he gave a price, I accepted, paperwork was sorted via my solicitor. Can't remember how much it cost but it was approx 2k all in, and over half of that was my solicitor's fees so no valuation or haggling was necessary.

DGRossetti · 27/01/2020 17:10

The vendor had never paid anything to anyone, and we only had the paperwork for the original lease.

Did you get an indemnity, in case the freeholder - like Mr. Benns shopkeeper - suddenly appeared.

When we bought, it turned out there was 3 years worth of ground rent (£180) unpaid that we found ourselves on the hook for. Apparently it's not the solicitors job to check that. (I never did actually find out what the solicitors actual job besides banking the cheque was Sad).

ethelfleda · 27/01/2020 19:43

It actually appears as if there is going to be some reform to the current legislation to make it easier for homeowners. Who knows when that will happen though!

OP posts:
Sweetdreamer93 · 28/01/2020 07:59

DGRossetti
You seem like somebody I could have a cup of tea with. Grin

DGRossetti · 28/01/2020 08:44

It actually appears as if there is going to be some reform to the current legislation to make it easier for homeowners. Who knows when that will happen though!

Yeah, DM mentioned something similar back in the 60s.

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