Leasehold house - to buy or not to buy

[Willwebebuyingnumber11]

After months of searching rightmove, we’ve found the perfect house. The exact size & location we wanted.
However, it is leasehold. I’ve contacted the estate agent today who confirmed there is 999 years remaining and the ground rent is £150 pa.
I have emailed back to ask for the percentage and frequency of any ground rent increases and we’ve got a viewing booked for Wednesday evening.
Are we being stupid for even viewing? Is there anything else I need to know? We will ask for a copy of the lease if we decide to proceed, and I will ask whether it’s possible to buy the freehold.
Incase it’s relevant, the house was built in 2001 and from what I can see from online sales history, the rest of the houses on the road are also leasehold.

Any advice will be much appreciated.

We've recently bought a leasehold and DH had looked up the process to buy the freehold, it's becoming much easier and cheaper through legislation being passed so less of an issue. Worth looking up (I can remember the exact terms but I'm sure it would be easy to search). The only things on our leasehold that we had to think about we're the need to ask if we can extend the house and not being able to set up a business address at home.

*can't remember

I'd stay well clear. The least costs could rise over the years, and there may be issues over paying for maintenance. Difficult to sell too.

I wouldn't touch it with a barge pole.

I just want to add that newer leasehold type houses should not in any way be confused with older properties which have ex coal authority leases.
There are many of these houses in Northern England and to come on and say “wouldn’t touch with a barge pole” just gives completely the wrong impression. The majority of these houses have extremely low fixed ground rents which can never be increased.

Even so, not owning the ground underneath my house is a no-no for me.

I own a leasehold flat but I wouldn’t for a house, simply because there are so many houses that are freehold that it seems foolish to buy one that’s leasehold. It sounds like a relatively recent build so I assume the freehold is owned by developers or investors. If that’s the case, definitely don’t. Our freeholders of our building are total cunts and I’m currently researching how we can enfranchise and at least take over building management. If you don’t have to deal with all of that, don’t.

Run like the wind. Even if you check the lease out now and are happy with it, what is there to stop them selling the lease to someone else next week? That someone might whack up the ground rent and refuse to sell you the freehold/charge an obscene sum for it

You need to discuss this with someone who knows what they’re talking about OP.

I there have been issues with people not owing the land their house is on and the freeholder not taking responsibility for problems.
I would steer clear

A friend I know brought a leasehold house with the intention of buying the lease however the cost tripled before he could buy it, th lease was sold to a management company and the ground. Rent went up considerably, almost impossible for him to sell now, and the rest of the estate have the same problem, there is some new legislation out or coming out around leasehold houses, I would suggest you go into it with eyes wide open and unless it’s your dream home I wouldn’t go near it, leaseholds on houses should never have been allowed in the first place,

All depends on the area as Mia says - if it's ex coal etc then no one can increase the ground rent charges - say, in Sheffiled most terraces aer leasehold with something like 15 pounds per year charge.

But if it's an otherwise freehold area/ anywhere in the South, then comletely different (and not good).

If it's a very modern leasehold avoid at all costs - these new estates have written in huge increases for future extortion out of over-priced property

Thanks everyone, really appreciate the replies.
The house is in Sheffield finally enough, but it’s a modern house - built in 2001. There’s 8 houses on the road that were all built at the same time and they all seem to be leasehold from what I’ve been able to see online. I’m assuming it’s the developer who owns the freehold.
It is worth trying to buy the freehold?

*funnily enough

I speak about this from bitter experience. We bought a new build leasehold. £200 ground rent a year. Stupid convenants. We sold it at a loss. Biggest mistake we ever made.

And to buy the lease was near impossible. Have a look at the leasehold partnership - lots of really useful info there.

@espressoontap thank you, sorry for your experience.
I think we might cancel the viewing.

It’s the newer LH houses you have to watch out for regardless of the area. Definitely avoid if you can.

To be fair, my comment relates to our older 1930s northern house with a fixed low ground rent. I think the new legislation is coming in because of the raising of rents on newer houses.

I wouldn’t buy leasehold if at all possible. You need to definitely look into rising ground rent and service charges.

Haha, it's Sheffield then! As it's a new build - that's a no, totally different rules there, so yes a good idea not even to view.

Hi OP, even modern leaseholds aren't all the same so you need to ask for a copy of the lease if you think you're interested. The agents should be able to get it and if they can't/won't, they're being useless as it's £3 from the Land Registry!

The lease will set out the ground rent (and importantly the uplift mechanisms) and any "estate" charges and one of us can probably skim it for you.

The other thing is the restrictions on what alterations you can do and what you need permission for (which will cost money to deal with.

Apart from the ground rent a leasehold property will also have a service charge for maintenance of common areas - private roads, footpaths, green spaces etc. If the householders don't own the freehold and therefore control the management then this is a really expensive way to get things done. Some freehold houses on estates are subject to service charges too so always worth checking.

Personally I'd steer clear, as PP have said, there are lots of freehold houses out there.

Ground rents are cheap - it's the service charges and proposed works etc you have to watch out for. And being a house there's no sharing these costs with anyone. It'll feel like you are renting, and the freeholder being a landlord. The lease will have lots of conditions in it I'm sure. I would steer clear too